Outdoors retailer Kathmandu has completed a rebranding to ‘KMD Brands’ – because, it, well has quite a few of them.
It also has a new CEO who, in the custom of all new brooms, wants to put his stamp on his new company.
The company includes surfwear brand Rip Curl and footwear seller Oboz as well as Kathmandu products.
The company’s ASX and NZX tickers will remain the same as ‘KMD’ meaning for brokers and other investors, plus business media the company’s shorthand name will be KMD.
Michael Daly, the former head of Rip Curl is the new CEO and he said in Wednesday’s statement that the name change was also a sign of changed strategy at the business.
“We are building global brands, including growing Rip Curl in North America, and making it the pre-eminent surf brand in Australasia,” he said.
“We are launching Kathmandu into North America and Europe highlighting its Australasian heritage and harnessing the specialist leadership and values that Oboz is known for in North America to grow into Australasia and then Europe.”
Investors liked the thoughts in yesterday’s statement and sent KMD shares up more than 3.3% to $1.22.
Mr Daly said the company also had a new vision statement of being the “the leading family of global outdoor brands”.
“Our purpose is to inspire people to explore and love the outdoors. All our brands are focussed on supporting, enhancing and encouraging activities for the outdoor consumer,” he said.
January half year results will be out next Wednesday and while they won’t include any impact from the rebranding, they will provide a handy baseline for measuring any improvement.
Covid Omicron lockdowns and restrictions, especially in the closing months of 2021 and in January of this year on both sides of the Tasman and in some offshore markets will depress sales and earnings.
In an update in early February, Kathmandu pointed to a strong rebound in the January 31 quarter after the first three months of the half year took a big hit from the Omicron lockdowns.
Kathmandu said “Same store sales grew strongly since the reopening of the Group’s Australasian store network in the second quarter, despite further travel restrictions and significant disruption from the recent Omicron outbreaks.”
As a result the company said underlying earnings before interest tax depreciation and amortisation “is expected to be in the range of $NZ9 million to $NZ11 million following a $NZ35 million Covid-related impact on EBITDA and additional brand marketing investment of $NZ14 million.”
“RipCurl YTD same stores sales were -1.6% below last year, including ongoing COVID impacts in the first quarter. Q2 FY22 same store sales growth was +3.0%, with +20.0% same store sales growth compared to Q2 FY20 (pre-COVID), reflecting the strength of the brand and continued resurgence in participant numbers within the surf category generally.
“Kathmandu YTD same stores sales were +2.8% above last year, despite significant COVID store closures in the first quarter. Q2 FY22 same store sales growth was +15.1%, reflecting the brand momentum building as a result of a renewed focus on marketing and product. Kathmandu same store sales remained -21.1% below Q2 FY20 (pre-COVID) due to continued restrictions on international travel and tourism.
“Group wholesale sales for 1H FY22 are expected to be 3.4% above last year, with Rip Curl wholesale sales +18.2%, offsetting declines in Oboz.
The proof will be in next week’s report.
