KMD Brands, the down-under parent of Rip Curl, Kathmandu, and Oboz, reported Ebit of NZ$31.4 million (€18.6m) for H1 ended Jan. 31. Total revenues rose by 34.5 percent to NZ$547.9 million (€323.8m) as gross margin came in flat at 58.7 percent. Ebitda was NZ$90.8 million (€53.7m) versus NZ$45.3 million. The group, citing the uncertain consumer outlook, high global inflation, and rising interest rates, said it remains “cautiously optimistic” about its H2 outlook. Year-over-year group sales were up 31.9 percent in February.
Rip Curl
Growth across all channels resulted in an 18.8 percent H1 sales increase to NZ$306.4 million (€181.1 m). Direct-to-consumer sales, which generated a same-store sales increase of 13.9 percent, showed strength in Australasia and Hawaii, which was bolstered by a return of international travel. Ebit improved by 9.4 percent to NZ$31.5 million (€18.6m). Ebitda grew by 11.4 percent to NZ$37.6 million (€22.2m), moderated by channel mix impact and higher freight and distribution costs.
Kathmandu
A strong recovery in the Australian market bolstered H1 results. Total sales increased by 51 percent to NZ$194.0 million (€114.6m), helped by the return of domestic and international tourism in New Zealand. International sales of NZ$1.4 million included first deliveries to new wholesale customers in Europe and Canada. Ebitda came in at NZ$12.3 million (€7.3m) as gross margin improved by 580 basis points on the positive impact of currency and a deliberate strategy to moderate the group’s historic “high-low” pricing model.
Oboz
Wholesale and online sales had solid H1 results, helped by a recovery from the prior year’s supply chain challenges and strong sales growth from a new online sales channel that bolstered the DTC segment. Period revenues came in at NZ$47.5 million (€28.1m) versus NZ$21.2 million. Ebitda was NZ$2.9 million (€1.7m) as the gross margin slipped by 50 basis points due to higher international freight costs over the prior 12 months.
