HONG KONG — Global Brands Group, the global brands and licensing business that spun off from Li & Fung group earlier this year, swung to a profit for the third quarter after posting a loss for the first half of the year.
Global Brands said Thursday that it posted a core operating profit of of $113 million for the three months ended Sept. 30. Global Brands reported a loss of $63 million in the first half of the year so its nine-month core operating profit amounted to $50 million.
Revenue for the three-month period ending in September totaled $1.03 billion. Revenue for the nine-month period totaled $2.38 billion. The company did not give comparative figures from last year, before the spin-off. It did not release any other figures, such as net profit, for the three-month and nine-month periods.
The results are ‘in line with previous announcement that seasonality skews significantly towards the second half of the year,” the company said in its filing to the Hong Kong stock exchange.
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“The Board continues to feel confident that there are excellent opportunities in the sectors within which the Group operates,” the statement said.
Sourcing giant Li & Fung announced in March this year that it was preparing for the spin-off of its global brands and licensing business. Executives said that by spinning off into an independent company, Global Brands would have more freedom to operate by opening more stores or pursuing more advertising, things Li & Fung shied away from in the past.