KMD Brands slump to half-year loss
Make us a preferred source
Make us a preferred source on Google
The news: Apparel retailer KMD Brands has slumped to a half-year loss as sales fell sharply amid weak consumer sentiment and softer trading during Australia's warmest winter.
The numbers: The ASX and NZX-listed company reported a statutory loss of NZD9.67 million ($9 million) for the six months to 31 January 2024, compared to a NZD14 million profit a year ago.
Group sales fell 14.5% to NZD468.64 million, while underlying earnings were down 66.8% to NZD15.1 million. It will not pay any interim dividend.
The context: Sales at its key Kathmandu brand were down 21.5%, while surfing label Ripcurl and footwear brand Oboz saw sales drop 9.2% and 20% respectively.
Group CEO Michael Daly attributed the slump in Kathmandu sales to weaker consumer sentiment, the warmest winter on record in Australia and an over-reliance on winter weight product. He noted Rip Curl and Oboz sales slowed after record sales last financial year.
The wholesale channel had also been challenging as traders cut back on inventory, he added.
However, the company said sales trends improved during the start of the second half, with group sales down 3.5% in February compared to the year before.
The source: ASX announcement
