KMD Brands, the parent company of Rip Curl, Oboz and Kathmandu brands, reported it is on track to deliver a record NZ$1.1 billion in full-year sales, despite softening consumer sentiment in the fiscal fourth quarter.
KMD Brands Ltd. provided a trading update and guidance for the full year ending July 31 as follows:
- Sales to be approximately NZ$1.1 billion;
- Gross margin to remain resilient and expected to be in line with 2022; and
- Underlying EBITDA in the range of NZ$105 million to NZ$110 million, with three weeks of trade remaining.
KMD Brands reported sales are expected to be a full-year record for the company, exceeding NZ$1 billion for the first time, following strong sales growth from all brands in the first three quarters of the financial year.
Recent trading in the fourth quarter has been more challenging, with increased cost-of-living pressures softening consumer sentiment.
Kathmandu experienced a slower start to its winter trading period, cycling its best winter season performance in 2022. A warmer start to winter in Australia impacted sales and retail foot traffic and softened consumer sentiment overall.
“With three weeks of trade still to come, we remain focused on delivering our key Kathmandu winter and Rip Curl Northern Hemisphere summer results while continuing to moderate our cost base for the year ahead,” said company CEO and managing director Michael Daly. “We’re looking forward to delivering over NZ$1 billion in sales at year-end—a first for KMD Brands.”
Photo courtesy Oboz