KMD Brands, the owner of Kathmandu, Rip Curl and Oboz, has announced a full-year statutory loss of $NZ93.6 million ($83.1 million). This comes despite a 1 per cent increase in sales to $989 million. The company’s earnings were significantly impacted by heavy discounting and weaker margins, contributing to an underlying net loss that widened to $28.3 million from $1.1 million the previous year. KMD Brands designs, markets, and retails outdoor apparel, footwear, and equipment through its portfolio of brands. The company aims to inspire and equip adventures with high-quality gear.
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) plummeted by 64.7 per cent to $17.7 million. The gross margin also experienced a decline, falling to 56.5 per cent from 58.4 per cent. In light of the challenging trading conditions, the board has decided against declaring a final dividend.
Across KMD Brands’ portfolio, Rip Curl saw a 2.1 per cent increase in sales, reaching $550.4 million. Kathmandu experienced marginal growth of 0.2 per cent, with sales of $361.9 million, while Oboz showed a 3.5 per cent increase, achieving $76.6 million in sales. Chief executive Brent Scrimshaw acknowledged the “highly competitive trading environment” of FY25 but highlighted a 10.5 per cent year-on-year increase in August sales as an initial indicator of potential recovery.
Kathmandu same-store sales have risen 22 per cent in the first seven weeks of FY26. The group is set to implement a transformation strategy aimed at achieving $25 million in cost savings. This strategy includes new store concepts and an accelerated digital rollout, incorporating Shopify across all three brands.
