Global Brands Group revenue dips 4.1%
After strengthening its balance sheet and simplifying its organizational structure to focus on its core businesses, Global Brands Group Holding Ltd saw revenue dip 4.1 percent in the first half of fiscal 2019.
Revenue hit $699 million during the six months ended September 30, compared to $729 million in 2017. Total net loss for the period was $284 million.
During the period, the group completed the sale of select North American businesses. It agreed to sell the Target Business and received a cash amount of $1.2 billion, being the Estimated Purchase Price of the Transaction.
“This gives us the ability to strengthen our balance sheet, and, through the distribution of a special dividend, give value to our shareholders,” William Fung, chairman of Global Brands, said of the transaction.
In line with plans to strengthen its balance sheet, the group, which owns brands like Sean John, Juicy and Bebe, equally divested its Kids business in China, during the period. The unprofitable business sold for $20 million.
“Global Brands is entering a new chapter as a more nimble organization with a flatter management structure and a deeper focus on Fashion and Footwear licensing, as well as our Brand Management business, the largest of its kind in the world,” added Fung.
Earlier this week, the group named Ronald Ventricelli as its new global chief operating officer and president of North America, a newly created role at the company.
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