KMD Brands shares jump on new transformation strategy
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More news: Shares in retail group KMD Brands rallied after the Rip Curl and Kathmandu owner announced a new transformation strategy, targeting cost cuts of at least $25 million.
KMD shares were up 4.6% to 23 cents at 2:55pm AEST, having shed 51% over the last 12 months.
KMD Brands unveils transformation plan, outlines $25m in cost cuts
The news: Rip Curl and Kathmandu owner KMD Brands has unveiled its new transformation strategy, targeting a "minimum $25 million cost reset".
The context: Ahead of its 2025 investor day today, the company announced the new strategy, which is intended to deliver a "clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography".
The $25 million cost cuts will include a recently commenced organisational restructure and a store network portfolio review.
KMD Brands will also establish product "Centres of Excellence" at its Rip Curl headquarters in Torquay to enhance the output of global product teams and streamline organisational structure.
The group said it will launch three Kathmandu "concept stores of the future" in Australia and New Zealand this calendar year.
What they said: "Since joining KMD Brands as group CEO, I've spent time across each of our offices and regions, listening to our teams and retail partners whilst immersing myself in the business," said chief executive and managing director Brent Scrimshaw.
"What I've seen is clear: the potential of our brands is far greater than what we're delivering today."
The source: ASX
