- Australian footwear, clothing and skateboard hardware company, Globe International (GLB) has been significantly impacted by COVID-19
- The company has seen a mass shutdown of its retail stores which is expected to negatively impact its revenue
- Due to the uncertainty of the financial impact, Globe has withdrawn its full-year guidance
- On market close before the Easter long weekend, the company’s shares are down 4.55 per cent, trading for $1.05 each
Australian footwear, clothing and skateboard hardware company, Globe International (GLB) has been significantly impacted by COVID-19.
The group has been impacted by the virus since the middle of March, due to the mass shutdown of its retail stores.
While some stores are still open, as well as online, the majority of its revenue comes from sales from in-store. Globe expects sales activity will be limited until retail stores re-open.
This has caused Globe to act swiftly to respond to the crisis, taking measures to protect its staff and business.
Measures include working with inventory suppliers to amend or delay outstanding purchases and taking up government assistance in Australia, the U.S., the U.K. and Asia where it has operations.
Due to the uncertainty of the financial impact of the pandemic, the company has also withdrawn its full-year guidance.
“While the group’s balance sheet remains strong, and a conservative approach to spending and procurement is in place while demand expectations are severely depressed, the group’s plans to pay a final dividend are on hold until a more robust forecast of the full financial year’s likely outcome can be made,” the company said.
On market close before the Easter long weekend, the company’s shares are down 4.55 per cent, trading for $1.05 each.