KMD Brands Ltd. (KMD, Group), the New Zealand-based parent of the Rip Curl, Oboz, and Kathmandu brands, indicated Wednesday, September 23 that that sales momentum has continued through the its fiscal year ended July 31, with year-over-year (y/y) growth recorded across all three brands.

Fiscal 2026 Full-Year Summary
On a constant-currency basis, total sales were reported up 1.7 percent y/y with Underlying sales growth, which is akin to “Adjusted” terms in most U.S. company reporting, were up 6.5 percent y/y to NZ$1.05 billion ($XXXX mm).

Group gross margin increased 120 bps y/y in an environment that reportedly continues to be promotionally driven.

Underlying operating expenses fell 0.2 percent y/y on a constant-currency basis, with the Next Level cost savings helping to offset strategic growth investments and continued global cost pressure.

An impairment expense of NZ$462.7 million was reportedly recognized during the year, but the company said the non-cash item does not impact the day-to-day operations of the Group. The impairment charge has been excluded from underlying results.

After impairment, the Group recorded a statutory loss after income tax of NZ$414.4 million.

Channel and product-driven margin improvement, improved sourcing, and favorability in input cost FX supporting growth inclusive of NZ$8 million of tariff refunds.

Rip Curl
Rip Curl brand total sales grew 3.8 percent y/y to NZ$571.2 million, reportedly helped by year-over-year movement in FX rates used to convert global sales to NZ$ reporting currency.

Wholesale sales were up 5.5 percent y/y, with growth in Europe driven by sales mix. Online sales increased 9.1 percent y/y to NZ$45.5 million, comprising 13.3 percent of direct-to-consumer (DTC) sales.
On a constant-currency basis, total sales were reportedly down 1.2 percent y/y.

Direct-to-consumer (DTC) total Rip Curl brand store sales (including online, x-Ozmosis, a regional multi-brand Australian retail chain owned by Rip Curl) was up 5.4 percent y/y, with U.S. retail sales said to be a highlight, and European summer sales came in strong strong on the back of “favorable climatic conditions” (It was hot, people!).

Rip Curl brand DTC same-store sales (including online, x-Ozmosis) were up 1.3 percent y/y. Ozmosis same-store sales were down 5.0 percent y/y.

Brand gross margin increased 110 basis points y/y, said to be a result of favorable channel mix and strengthening exchange rates across key markets and input costs.

Underlying operating expenses for the Rip Curl brand were down versus the prior year (on a constant-currency basis), with “a strategic cost reset helping to offset strategic growth investments and continued global cost pressures.”

Oboz Footwear
Oboz brand total sales grew 3.8 percent y/y to NZ$79.5 million, reportedly supported by strong product introductions, improving wholesale performance, and continued digital acceleration.

DTC online sales saw strong growth of 11.8 percent y/y, with the website successfully moving onto the Group online trading platform during the second half.

Wholesale sales were up 2.8 percent with growth reportedly led by new product introductions.

Gross margin improved 7.3 percentage points y/y, said to reflect favorable channel and product mix plus one-time tariff refunds of NZ$4.3 million.

Brand operating expenses were said too be “tightly controlled,” with improved operating leverage versus the prior year.

Kathmandu
Kathmandu, which is the company’s outdoor retail business, reportedly led the momentum for the year with strong DTC sales growth throughout the full-year period. Kathmandu total sales increased 11.1 percent y/y to NZ$402.3 million in fiscal 2026 with growth reportedly achieved while operating four fewer stores than the prior year. Strong first half sales momentum reportedly continued into the second half, with Q4 closing up 9.4 percent y/y.

Kathmandu same-store sales (including DTC online) were up8.2 percent.
Strong sales results in both Australia (+4.3 percent y/y) and New Zealand (+11.7 percent y/y), with positive sales growth in every quarter of the year.

Online sales increased by +9.6 percent to NZ$57.1m, comprising 14.3 percent of DTC sales.

Gross margin decreased -0.4 percent of sales y/y due to product mix change, a focus on selling through aged inventory in the first half and maintaining competitive promotional intensity through the year. Second half gross margin delivered +0.6 percent of sales y/y despite being impacted in the fourth quarter by unseasonally warm weather on the east coast of Australia.
Underlying operating expenses reduced y/y on a constant-currency basis, improving operating leverage with ongoing cost discipline.

Image courtesy Kathmandu/KMD Brands, Ltd.