KMD Brands Limited, the New Zealand-based parent company to the Kathmandu, Oboz and Rip Curl brands, reported that sales momentum has continued into its fiscal second quarter ended January 31, resulting in “record first-half sales.”
Consolidated company sales for the fiscal first half are expected to increase 34 percent to approximately NZ$546 million, with “particularly positive trading in Australia.” The company said in a release that Kathmandu brand sales recovery continues, with total sales up 51 percent above the prior-year first half, reflecting a return of travel and tourist-related spend.
Oboz first-half sales have reportedly rebounded from COVID-related supply constraints last year, surging 124 percent. Rip Curl total sales grew 18 percent, with growth in direct-to-consumer sales, while maintaining wholesale sales levels following strong growth last year.
Total company gross margin was said to remain resilient overall in the half, with improved gross margin for the Kathmandu brand.
Underlying fiscal first-half EBITDA is expected to be approximately NZ$45 million, compared to NZ$10.2 million EBITDA in the prior-year comp period, which included NZ$5.1 million of one-off COVID assistance.
Inventory levels reportedly remain elevated, “reflecting the decision to temporarily build stock positions to mitigate supply challenges and to support Oboz forward order book growth.” Kathmandu inventory is down approximately NZ$24 million to FY22, and the company’s inventory balance is expected to normalize during the second half as “purchase orders align to improved shipping timeframes.”
KMD said it continues to benefit from a return to travel and international tourism through January, with Kathmandu sales jumping 52 percent and Rip Curl continuing its growth trajectory at 19 percent for the month.
Photo courtesy Oboz
