Kathmandu powers record first half for KMD Brands

Outdoor apparel retailer KMD Brands has reported a “record” first half driven by strong sales recovery across all three of its brands.

For the six months to January 31, sales grew 34.5 per cent to NZ$547.9 million with continuous sales growth registered in all key selling regions.

Statutory tax-paid profit reached $14 million with underlying EBITDA at $45.3 million.

By brand, Kathmandu’s sales rebounded 51.2 per cent to $194 million. Online sales normalised at $26 million and represented 13.6 per cent of direct-to-consumer (DTC) sales. The outdoors brand also made its first deliveries to wholesale partners in Europe and Canada during the half and launched French, German and Canadian websites.

Rip Curl achieved $306.4 million in sales, up 18.8 per cent supported by sales recovery across its Australasian markets and in Hawaii. Online sales contributed $17.8 million and comprised 9.6 per cent of total sales.

Oboz’s first-half sales grew 124.3 per cent to $47.5 million with online sales up 591 per cent over last year, at $2.8 million.

Group CEO & MD, Michael Daly, said all three brands delivered strong sales growth in the half despite uncertainties in consumer outlook. 

He added rising interest rates and inflation will likely impact consumer demand however the business remains “cautiously optimistic” and will invest in its long-term global expansion.

Meanwhile, group sales in February were up 31.9 per cent compared to the same period last year indicating positive sales momentum. 

“Positive direct-to-consumer sales trends have continued into the second half, and we are well positioned to continue to benefit from the return of international travel and tourism,” said Daly.

• Further reading: KMD Brands bullish about Christmas after quarterly sales boost

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