KMD Brands Limited (Group), the New Zealand-based owner of the Rip Curl, Oboz and Kathmandu brands, is reporting that Group sales in fiscal 2026 are now expected to be in the range of NZ$1,040 million (~$608 mm) to NZ$1,044 million (~$611 mm), which would represent a 5 percent year-over-year (y/y) increase at the midpoint. The forecast comes with two weeks left in the company’s fiscal year 2026. 

KMD Brands reports in the New Zealand dollar (NZ$) currency and may at times refer to amounts in Australian dollars (A$) currency for dividend purposes. This report provides conversions to U.S. dollar ($) currency based on an average exchange rate of 1 NZ$ to 0.5849 US$ for the trailing 12-month period ended July 22 as calculated by OFX. 

Direct-to-consumer same-store sales, including online, on a constant-currency basis for the first 24 full weeks of the second half from February 2, 2026, to July 19, 2026, were reported at: 

  • Kathmandu +4.8 percent y/y
  • Rip Curl -2.8 percent y/y 

Group underlying EBITDA in fiscal 2026 is expected to be in the range of $38 million (~$22 mm) to $41 million (~$24 mm), representing a 123 percent y/y increase at the midpoint versus fiscal 2025. 

Kathmandu sales reportedly continued to improve year-over-year relative to the fourth quarter of fiscal 2025, led by a strong performance in the rainwear, fleece and base layer categories. Despite year-to-date growth, the insulation category has been impacted during the winter sale period by weaker consumer demand associated with unseasonably warm weather on the east coast of Australia. Sales trends in New Zealand reportedly continue to outperform Australia. 

As a reminder, the seasons in the southern hemisphere run opposite the northern hemisphere, and the ANZ region is currently in its winter season. 

Rip Curl sales reportedly continue to be impacted by “subdued consumer sentiment in Australia and competitor promotional activity.” A reduction in the benefit of favorable foreign exchange rates has adversely impacted the fourth quarter of the current fiscal year. 

Oboz sales have returned to growth year-over-year in fiscal Q4, a trend the company said was anticipated, and was driven by “continued strong online performance and flow of new product launches.” 

The Group’s net debt is expected to be in the range of approximately NZ$63 million to NZ$66 million at the end of July 2026, compared to NZ$52.8 million at the end of the 2025 fiscal year. The Group said net debt is expected to be elevated y/y due to: 

  • A change in phasing of payment timing as part of overall trading terms with selected suppliers; 
  • Investment in additional working capital to secure inventory ahead of potential global supply
    chain disruptions associated with current geo-political tensions; and 
  • Weakening of the NZ dollar y/y (impact of approximately NZ$8 million). 

The Group said it will be compliant with all bank covenants under the new bank facility on July 31, 2026. 

In other KMD news, the Group also announced the decision to divest its Southeast Asian manufacturing facility, with a phased production wind down over the next 12 months. 

The transaction is expected to deliver net property proceeds in the range of NZ$5 million to NZ$7 million in addition to unlocking working capital of approximately NZ$6 million, which is expected to further strengthen the Group’s balance sheet. 

The Group said its ongoing business review is progressing well and is expected to be complete by the announcement of the FY26 Annual Results in late September. 

Image courtesy Oboz Footwear/KMD Brands, Ltd