The outdoor and sportswear group saw e-commerce growth and stronger June sales, despite weather-related setbacks in its core brands.
New Zealand-based KMD Brands reported a 1.9 percent year-over-year drop in group sales for the fiscal third quarter ending May 25. The decline followed a modest 0.5 percent increase in the first half of the fiscal year. The downturn was largely attributed to unseasonably warm autumn weather in Australia, which impacted sales of Kathmandu’s insulation products.
By brand, Rip Curl posted a 0.9 percent increase in Q3 sales, while Kathmandu dropped 6.4 percent and Oboz was down 1.1 percent. Rip Curl saw solid performance in its direct-to-consumer channel, especially at North American flagship locations. Oboz showed sequential improvement with new product releases ahead of the US hiking season, but continued to trail year-over-year.
Online sales provided a key growth area, up 10.7 percent year-to-date. Kathmandu’s May launch of a revamped e-commerce platform boosted its digital sales by 26.1 percent. Similar upgrades for Rip Curl and Oboz are planned for the first half of FY26.
CEO Brent Scrimshaw said the company remains focused on maintaining market share and improving cash flow. KMD now expects FY25 Ebitda to range between 15 million New Zealand dollars (€7.77m) and NZ$25 million (€12.95m), factoring in a NZ$1 million (€518K) impact from new US tariffs. The group also moderates FY26 inventory commitments and has renegotiated banking covenants, with net debt projected at NZ$70 million (€36.25m) by July 31.
A more detailed outlook is expected at the company’s investor day in September.
