Globe (ASX:GLB) share price rockets 34% as sales soar

The Globe share price is climbing strongly today after the company saw a strong upgrade in its sales for the first half of FY21.

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The Globe International Limited (ASX: GLB) share price powered up today as the company released a trading update. Shares in the skate-shop were up 34.3% at a price of $4.50 at close of trade.

The news comes after a superb 6 months for the company, which has seen a number of announcements send its share price soaring 267%.

Market update

This afternoon, shares in the consumer discretionary company were rocketing off the back of a positive performance update for the first half of FY21.

Globe advised that preliminary sales for the half year were around $125 million, up approximately 60% compared to the prior corresponding half. Earnings before interest and tax (EBIT) is estimated to exceed $20 million. This compares to the $4.2 million achieved in the prior half, marking an increase of 376%.

The company plans to announce its half year results late in February. A more complete view of the results and a full year outlook will be provided then. Globe noted that the information in this trading update is unaudited and remains subject to finalisation.

What Globe does

Globe is a global producer and distributor of purpose-built apparel, footwear, and hardgoods for the board sport, street fashion and workwear markets. 

Founded in 1985 by three brothers, its business is divided between proprietary brands, licensed brands, and distributed brands. The main of which is 'Globe', a large skating brand.

The Australian based small cap currently boasts a market capitalisation of $138 million, and sells its products in 100 countries worldwide. In addition, Globe is paying a trailing dividend yield of 2.59%.

About the Globe share price

Today's 34.3% increase in the Globe share price marks a 52-week high for the company.

It comes after a positive 2020 for the company, which saw its shares gain 146% despite COVID-19 disruptions. In contrast, the All Ordinaries Index (ASX: XAO) dropped 3.6% during the same period.

Motley Fool contributor Daniel Ewing 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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