KMD Brands Limited (Group), the parent of the Rip Curl, Kathmandu and Oboz businesses worldwide, provided an update to the 14-week first quarter of fiscal year 2026.
Brent Scrimshaw, Group CEO and managing director, KMD Brands, said Group sales results for the first quarter were encouraging and have demonstrated some early-stage momentum. “However, the Group’s first half results are dependent on the key Black Friday and Christmas retail trading periods to come,” he continued. “Our focus remains on optimising the balance between sales and gross margin to make way for fresh new season product as we move into the traditionally more significant second quarter trading period.”
Fiscal First Quarter Ended November 2
Total sales for the first quarter ended November 2 increased 7.9 percent year-over-year (y/y).
Direct-to-consumer (DTC) same-store sales, including online, for Rip Curl grew 3.0 percent y/y and Kathmandu same-store sales jumped 14.0 percent y/y for the 14-week period.
Group gross margin for Q1 FY26 was 55.8 percent of net sales, down ~120 basis points y/y due to a continued focus by all brands to sell through aged inventory and enhance the balance sheet position.
First quarter 2026 gross margin was above the fiscal 2025 second-half levels.
Group inventory balance at the end of October 2025 is $8 million lower year-over-year.
Forward wholesale order books remain stable, slightly above last year’s levels.
The Group said it is on track to deliver $25 million of annualized savings in FY26, resetting the cost base to mitigate cost pressure and to self-fund the ‘Next Level’ strategic growth plan.
Scrimshaw further commented, “I’m pleased with the progress we have made to date against our ‘Next Level’ transformation plan. We remain disciplined in our approach to strategic growth investments and reducing our net debt in FY26.”
Image courtesy Kathmandu
