KMD Brands posts 8% sales lift after Kathmandu improvement
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The news: Rip Curl and Kathmandu owner KMD Brands has reported an 8% increase in group sales in the five months to December 2025, as improvements in its wholesale business offset lower margins.
The numbers: Kathmandu sales were up 12.9% year on year, with Rip Curl (+5.6%) and Oboz (+4.5%) sales also improving.
KMD said group wholesale sales for the five months were 9.4% above the same period last year. However, gross group margin was 56.7%, around 100 basis points lower year on year, due to increased promotional activity in the market.
KMD expects first-half underlying EBITDA to be between NZD8 million ($6.9 million) and NZD11 million, compared to $3.9 million in the prior corresponding period.
The group expects net debt at 31 January to be between NZD85 million and NZD90 million, up from NZD76.2 million a year ago, impacted by a weaker New Zealand dollar.
What they said: "Whilst we are still at the early stages of our transformation, we are encouraged by the improved performance of Kathmandu, with an adjusted flow of fresh innovation planned in the second half which we believe will strengthen our ability to expand gross margin over time," said KMD's group CEO and managing director Brent Scrimshaw.
The source: ASX
