Sportswear and skateboard brand Globe International has reported a decline in sales for the fiscal first half, which management attributed to the planned transition into a higher-margin brand portfolio.

The company’s revenue for the six months ended December 31 fell 12 per cent year-on-year to $95.3 million.

The decline was due to the company’s decision to discontinue less profitable brands that contributed $15 million in revenue in the prior year.

On the bottom line, EBIT decreased 3 per cent to  $7.1 million but EBIT margin was up 10 per cent to 7.5 per cent. Net profit after tax also slid 3 per cent to $4.8 million.

“Globe International’s long-term strategy of building stronger, more profitable brands remains on track,” said CEO Matt Hill.

“The work we have done and the strategic initiatives we have implemented have improved profitability, and laid solid foundations for further, high-margin growth. 

“We expect to see the benefits continue to flow through to the second half of this financial year,” he added.