Globe International (ASX:GLB) share price jumps 9% on sales update

The apparel company’s shares received a boost today…

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The Globe International Limited (ASX: GLB) share price took off today following the company’s latest performance report.

At market close, the apparel company’s shares finished the day at $5.40, up 9.76%.

How is Globe International performing in FY21?

Investors were fighting to get a hold of Globe International shares in late afternoon trade after the company provided exciting results.

According to the release, Globe International advised that sales growth has been robust despite facing challenges with the supply of goods. This relates to the impact of COVID-19 on global logistics routes, particularly from China where most of its apparel is sourced.

The company stated that it has so far managed to overcome the significant delays reported on freight. As a result, this has led Globe International to achieve first-half sales well ahead of expectations. Furthermore, sales in the second-half are expected to double from the prior corresponding period.

In total, the company is forecasting full-year sales for FY21 to be more than $250 million. This is more than a 60% uplift of the $152.8 million that was recorded in last year’s financial scorecard.

Pleasingly, Globe International is also projecting profitability to be greater than what was originally assumed during its February half-year results.

Earnings before interest and tax (EBIT) in terms of percentage return on net sales are predicted to be in the mid-teens. Again, this compares with EBIT returns of just 4.8% in FY20 and 16.8% in H1 FY21.

The company is scheduled to release its full-year results sometime in mid-August.

Globe International share price snapshot

Over the past 12 months, investors would be pleased with the company’s share price performance, up 330%.

Based on today’s price, Globe International has a market capitalisation of roughly $206 million, with around 41 million shares outstanding.

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