KMD Brands Limited, the owner of the Rip Curl, Oboz and Kathmandu brands, issued a media statement on Monday, April 7 regarding the recent U.S. move to increase global tariffs on products manufactured outside the U.S., including significant tariff rate increases on goods sourced from Asian countries.
The company said two of the Group’s brands have significant operations in the U.S., with Rip Curl U.S. accounting for ~12 percent, and Oboz U.S. representing ~7 percent, of the Group’s annual sales.
“Our Oboz and Rip Curl product is currently manufactured across Asia,” KMD said. “These tariff increases have created significant uncertainty for most apparel and footwear businesses which sell into the U.S. and will likely result in price increases that may impact consumer demand. The Group is monitoring market dynamics, assessing optimal timing of price increases in response to higher input costs, and reviewing cost mitigation options to protect profitability.”
The company said that until its has more clarity on changes to consumer demand in the U.S., the Group will redirect some U.S. inventory to other key global markets, or hold inventory with existing international third-party logistic (3PL) partners. Both Rip Curl and Oboz are said to have significant seasonal inventory in the U.S. which was landed prior to the recent tariff increases.
“Given significant consumer uncertainty and the fluid nature of possible tariff negotiations, it remains too early to provide a reliable estimate of the likely financial impact for the remainder of FY25,” the company added.
“The new U.S. tariffs are another headwind in an already challenging consumer environment in the U.S., said Group CEO and Managing Director Brent Scrimshaw. “We are evaluating all strategic options, including pricing, cost mitigation and inventory investment, to safeguard the long-term value of our brands and protect our stakeholders.”
Image courtesy Rip Curl
