The Globe International Limited (ASX: GLB) share price shot up to a 52-week high today after the company provided the first update since its annual general meeting (AGM) in October.
In morning trade, shares in the sports and outdoor clothing company surged up 8% to a $2.65 high. The Globe share price has since retreated to $2.60, up 6.12%, at the time of writing.
What did the company announce?
Globe advised the market that its performance for the first-half of the 2021 financial year would be “significantly ahead” of the prior corresponding period, in both sales and profits.
At its AGM on 22 October, Globe reported that it expected total group sales and profits to be ahead of last financial year based on the extremely strong first-quarter trade in FY21.
Today, the company advised its strong first-quarter results had continued into the second quarter and it was in an extremely robust financial position with solid reserves of cash, and no debt.
However, Globe did provide some caution today, saying that continued uncertainties relating to the COVID-19 pandemic, particularly in Europe and North America, made it impossible to give an accurate outlook for the full year of 2021.
What does Globe International do
Globe International operates in the apparel business. It primarily produces and distributes purpose-built apparel including footwear, hardgoods for the board sports, street fashion, and work wear. It sells both proprietary and licensed brands.
Some of its proprietary brands include Salty Crew, FXD, and Impala Skate. Meanwhile, Globe’s third-party business carries licensed brands such as Stussy, Obey, and Raen.
About the Globe share price in 2020
The Globe share price has lifted more than 60% so far in 2020. The share price was trading as low as $1.10 back in July before rebounding to today’s level, reaching its 52-week high.
Globe International currently commands a market cap of $101 million.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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