Pas Group expects its full-year EBITDA to be between $10.0m and $13.0m, down on the $18.8 million reported in financial year 17 as the fashion firm continues to battle tough retail market conditions.
Inclusive of an investment in new business of $0.8m, the update comes after Pas recently announced the signing of a major licencing deal with global brand Russell Athletic through its Designworks division.
The collaboration will see Designworks’ proven operational model drive product design, sourcing and marketing of the Russell Athletic brand at specialty sport and lifestyle retail from 2019 onwards.
Russell Athletic will join a number of renowned sporting brands at Designworks, including Everlast, Lonsdale, Slazenger and Dunlop.
In addition to the recently announced new business including the licensing deal with global brand Lonsdale and the women’s Mix program with Coles Supermarkets, Designworks will launch women’s footwear in H1 FY2019, which complements its existing apparel and accessories business.
Once fully operational, sales relating to new business are expected to be between $35m and $40m per annum.