KMD Brands, Ltd., in a financial update, reported sales for the third quarter ended April 30 rose 15.6 percent. Among its brands, sales grew 7.9 percent at Rip Curl, 11.3 percent at Kathmandu and 120.3 percent at Oboz.

Commenting on the Q3 trading update, Group CEO and Managing Director Michael Daly said, “We are pleased to report that Rip Curl, Kathmandu, and Oboz have achieved another quarter of year-on-year sales growth. We now begin our key Kathmandu winter and Northern Hemisphere summer trading periods. The Group is well positioned to benefit from the return of international travel and tourism and is continuing to invest in the long-term international expansion of our brands.”

In the nine months, KMD’s sales grew 27.7 percent. Sales grew 15.0 percent at Rip Curl, 36.0 percent at Kathmandu, and 122.7 percent at Oboz.

KMD provided its update as part of its Investor Day presentation. Among the targets set for Investor Day:

  • EBITDA margins of 15.0 percent in the short-term, up from 11.3 percent in the rolling twelve months through January 2023;
  • Working capital to be reduced in the short-term to 18.0 percent of sales from 21.8 percent in the rolling twelve months through January 2023;
  • Oboz North America sales are targeted to reach U.S.$100 million over the medium term from its current U.S.$54 million;
  • Rip Curl’s sales in North America are targeted to reach New Zealand$200 million in the medium term from NZ$146 million;
  • The Kathmandu chain is targeted to reach 200 million in locations, up from 155 locations as of January 2023; and
  • Overall, KMD has a target of having online represent 25.0 percent of DTC sales, up from 14.1 percent as of the rolling twelve months through January 2023.

Photo courtesy Oboz