MELBOURNE: Globe International Limited (GLO.AX) reported strong financial stability for the 2025 fiscal year, using its profit to deliver a significant dividend payout to shareholders, even as it navigated geopolitical uncertainty and new tariff pressures in the key U.S. market.
The Australian footwear and apparel company, known for its roots in action sports, announced a fully franked dividend totalling A$0.20 per share for FY25, returning A$8.2 million to shareholders. This marks a decade of consistent semi-annual payouts for the company.
In his address to the Annual General Meeting on Monday, Chairman Harry Hodge highlighted the milestone as a “testament to the entire team’s expertise and passion,” crediting a management team that is “emotionally invested” in the founder-led business.
CEO Matt Hill reported revenue of A$205.4 million and earnings before interest and tax (EBIT) of A$14.6 million for the year. He stated that all three operational regions—Australia, North America, and Europe—contributed to the group’s profitability.
The company’s strategy has centered on refining its brand portfolio, focusing on high-potential global brands while culling non-strategic ones. Hill highlighted significant growth in the company’s core brands: workwear label FXD, surf-oriented Salty Crew, and its flagship Globe footwear.
Regional Performance and Tariff Mitigation
While Australia remained the strongest performer, the North American division faced headwinds from new U.S. tariff charges on imported goods in the last quarter of FY25.
“Management moved swiftly in North America to address the negative impact of the tariffs,” Hill said, acknowledging that the pressures are expected to continue into the first half of the current 2026 financial year.
He projected that proactive efforts by the management team would fully mitigate the negative impact on margins by the second half of FY26. Meanwhile, the European business posted a profitable year while completing an operational overhaul, positioning it for further growth.
Brand Portfolio Evolution and Outlook
Beyond its core brands, Globe reported progress with emerging labels like X/DMG workwear and Szade eyewear. The company also launched two new brands in FY25: S/Double clothing and Ritual Vision eyewear.
Looking ahead, Hill noted a profitable first quarter for FY26 but warned of expected downward pressure on margins in the first half due to the tariff impact. He forecast a return to margin growth in the second half of the year, driven by the company’s mitigation strategies and continued expansion of its core and emerging brands.
“Globe now has a 40-year track record for successfully developing brands,” Hill said, emphasizing the company’s history of adapting to market changes while maintaining a portfolio of “relevant and lucrative brands.”
Founded in 1985, Globe International operates across the boardsports, workwear, outdoor, and fashion streetwear markets.