The company warned its net losses for 12 months ended March 31 would range from $70 million to $75 million, down from $90 million a year earlier.
The company attributed the loss to “the writeoff of a receivable arising from a loan made by the company” as well as charges, intangible assets and “the expiration of a major license during the year.”
In November, the firm said first-half revenue slipped 3.2 percent to $1.79 billion. “This was driven largely by the shift of retail buying to later in the year, in addition to the anticipated cessation of the Quiksilver kids fashion license due to the company declaring bankruptcy and Coach taking their footwear business in-house when their license expired in June 2017,” Global Brands said at the time.
The firm also said earnings before interest, taxes, depreciation and amortization would be “broadly consistent” with the year-ago take of $380 million.
Global Brands has been working to revamp its business and bring in new names, for instance entering into an agreement to license the retail operations of BCBG Max Azria (the company works with Marquee Brands, which bought the brand’s intellectual property). The Hong Kong-based firm also bought the intellectual property for bootmaker Frye.
“Brands are hard to build,” said Bruce Rockowitz, Global Brands Group chief executive officer, at a press conference last year. “It takes a long time, and what we see is a lot of opportunity in brands that are still relevant, still doing a large business, but are impaired because they are operated inefficiently — too much staff and getting killed by too many retail stores.”