KMD Brands has reported continued sales momentum into the first five months of FY26, buoyed by a significant rebound in its Kathmandu division. The group anticipates a stronger first-half earnings result, despite increased promotional activity during the period. KMD Brands is an Australasian company which designs, develops, and markets outdoor apparel, footwear, and equipment. Its portfolio includes Kathmandu, Rip Curl, and Oboz.
Group sales saw a 7.9 per cent year-on-year increase for the five months ending in December. Kathmandu led the charge with a 12.9 per cent rise, followed by Rip Curl at 5.6 per cent and Oboz at 4.5 per cent. This growth was primarily fuelled by strong performance in the direct-to-consumer channel during the Black Friday and Christmas shopping periods.
Same-store sales experienced notable gains, with Kathmandu up 12.7 per cent and Rip Curl increasing by 1.7 per cent. Wholesale sales also contributed positively, rising 9.4 per cent compared to the previous year. Forward order books remain slightly ahead of last year’s figures. The gross margin for the period stood at 56.7 per cent, which is approximately 100 basis points lower year-on-year. This decrease is attributed to increased promotional activity and inventory clearance, although margins were higher than in the second half of FY25.
Looking ahead, KMD Brands expects its first-half underlying EBITDA to fall between $NZ8 million and $NZ11 million, a notable increase from $NZ3.9 million in the prior corresponding period. Net debt at January 31 is projected to be in the range of $NZ85 million to $NZ90 million, following the extension of its debt facilities to April 2027 and a reduction in total bank lines to approximately $NZ283 million.
