KMD Brands Limited Analysis

Overview

Kathmandu, a certified B Corp, was founded in 1987 in New Zealand and specialises in quality clothing and equipment for travel and adventure. Oboz, which became part of the group in 2018, is based in North America and designs ‘True to the Trail’ outdoor footwear to help people explore the wilderness. Rip Curl, acquired in 2019, is a leading global surf brand born in Bells Beach, Australia in 1969.

With a shared focus on expertly designed, technical and sustainable products, all three brands are distributed through wholesale, retail and digital channels.

On 19 October 2009 the company, then named Kathmandu Holdings Limited, announced an Initial public offering for fully paid ordinary shares to be listed on ASX and NZX under the code KMD.

On 16 March 2022, the company changed its name to KMD Brands Limited.

Performance

The following information was extracted from KMD Brands Limited's Full Year Results, released 24 September 2025:

FY25 financial summary (vs FY24):

• Group sales up +1.0% to $989.0 million.

• Gross margin(3) down -1.9% of sales to 56.5%.

• Underlying operating expenses(1),(3) up +3.9% to $541.6 million.

• Underlying EBITDA(1) $17.7 million, down -64.7% year-on-year (“YOY”).

• Statutory NPAT loss -$93.6 million. Underlying NPAT(1) loss -$28.3 million.

• Net Working Capital $157.7 million, -$40.6 million lower YOY.

• Net Debt $52.8 million, with significant funding headroom of approximately $235 million.

• No final dividend declared as a result of FY25 operating performance.

Trading update

Total August 2025 sales were +10.5% above last year. DTC sales for the first 7 full weeks to 14 September 2025(6) in a seasonally non-significant trading period:

• Kathmandu +19.4% YOY, (same store sales +22.0% YOY), with targeted promotional intensity in a competitive trading environment.

• Kathmandu gross profit dollars for the first 7 full weeks to 14 September 2025 are +11.0% above the equivalent period last year.

• Rip Curl DTC sales -1.2% YOY (same store sales +1.5% YOY).

Wholesale sales trends are improving, but global uncertainty remains. Forward orders and in-season buying from key accounts support an improving wholesale trend.