KMD Brands Limited, formerly Kathmandu Holdings Limited, reported sales surged 61.8 percent in the first quarter ended October 31, reflecting the removal of Australasian lockdowns and a return to more normal trading.
Group total sales are 17.5 percent above Q1 FY201, which was pre-COVID and a more relevant comparison to Q1 FY22.
Strong sales growth was seen across all brands. Same-store sales at the Kathmandu chain vaulted 107.2 percent while Rip Curl’s same-store sales were up 29.7 percent year over year. Oboz achieved record Q1 wholesale and online sales, with supply no longer a constraint. Oboz’s forward order book and inventory position also support ongoing growth
Q1 FY23 underlying operating profit has improved by nearly $30 million year-on-year. Group gross margin remains resilient, with an improved margin for the Kathmandu brand.
Commenting on the trading performance, Group CEO & Managing Director Michael Daly said, “KMD Brands achieved a positive result in Q1 FY23, with strong sales growth across all brands compared to both prior year and pre-COVID levels. Pleasingly, gross margin and profitability are holding up well, with the group’s underlying operating profit for the first quarter of FY23 improving by nearly $30 million year-on-year.
“Looking forward, while current trading for our three brands is strong, we remain cautiously optimistic, with the potential of high inflation and rising interest rates impacting consumer sentiment in our key global markets. As always, the first half-year results remain dependent on the key Black Friday and Christmas retail trading periods still to come.”
Photo courtesy KMD Brands