KMD Brands posts lower quarterly sales at Kathmandu, Rip Curl
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The news: Apparel retailer KMD Brands reported a 5.8% drop in first-quarter sales as each of its brands lost groundscompared to the previous corresponding period.
The numbers: Total sales at Rip Curl fell 6.7% quarter over quarter, while sales at Kathmandu (-2.7%) and Oboz (-8.6%) also lowered.
New Zealand sales decreased by 15.4% during the quarter, following strong end-of-line clearance sales in August last year, the company said.
KMD noted that wholesale accounts "remain cautious" on pre-season commitments for Rip Curl and Oboz, with Rip Curl's wholesale sales down 11.2% and Oboz's 8.5% below the first quarter last year.
The context: KMD's outgoing CEO Michael Daly said that the group is cautious on consumer sentiment given the "challenging global macroeconomic environment".
KMD, formerly Kathmandu Holdings, is an ASX- and NZX-listed outdoor, lifestyle and sports retailer, based in Christchurch, consisting of the brands Kathmandu, Rip Curl and Oboz. In September, the group posted a full-year loss as sales fell sharply amid weak consumer sentiment and softer trading.
What they said: "Our strategy remains unchanged," Daly said. "For FY25, we remain focused on returning to sales growth, improving profitability, and reducing inventory."
The source: ASX announcement
