• FY earnings up 11.9% to US$117m
  • Margins widen to 34.2%
  • Sales drop 0.9% to $3.42bn

Hong Kong's Global Brands Group has revealed mixed full-year results as earnings grew and margins hit target, but sales fell slightly.

For the year to the end of December, earnings climbed 11.9% to US$117m from $104m a year earlier. Margins continued to trend up strongly, growing as a percentage of turnover to 34.2% from 32.3%, achieving the group's three-year plan target one year ahead of plan.

Global Brands said the increase reflects the success of its efforts to grow its portfolio of American power brands, both organically and through selective acquisitions, and expand these brands to new markets globally. The group manages brands such as Juicy Couture, Coach, Calvin Klein and Frye.

Turnover grew to $3.42bn from $3.45bn, reflecting a drop of 0.9% as a result of an unseasonably warm winter in North America, a decrease in the euro exchange rate and the tail end effect of the discontinuation of underperforming businesses.

"As a group, we embark upon 2016 with continued confidence that we can build on our success of the past year by maintaining the growth momentum of our Licensed and Controlled Brands businesses, further optimising our operations and improving margin levels," the company said. "Along the way, we will continue to look for growth opportunities, both organic and via selective strategic acquisitions, where we can leverage our existing platforms and build on our strengths in key categories."

The company said Asia continues to represent "promising opportunities" given its expanding middle class and their desire for authentic affordable luxury brands. Consequently, it will continue to investment in e-commerce and omni-channel, including in China where online and mobile device-based shopping has become an increasingly dominant trend.