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 Half Year Results, released 31 March 2026:

1H FY26 financial summary (vs 1H FY25):

• Group sales up +7.3% to $505.4 million.

• Gross margin3 down -1.2% of sales to 56.8%.

• Underlying operating expenses1,3 up +2.4% to $275.6 million.

• Underlying EBITDA1 $11.5 million, up +196.6% year-on-year (“YOY”).

• Statutory NPAT loss -$13.1 million. Underlying NPAT1 loss -$11.5 million.

• Net Working Capital $179.2 million, -$13.4 million lower YOY.

• Net Debt $94.0 million, impacted by the weakening of the NZ dollar year-on-year.

• No interim dividend declared as a result of 1H FY26 operating performance.

Trading update

Direct-to-consumer same store sales (including online) for the first six full weeks of the second half from Monday 2 February to Sunday 15 March 20267 in a seasonally non-significant trading period:

• Kathmandu +11.1% YOY, combined with gross margin improvement YOY of c. +50 basis points (+0.5% of sales).

• Rip Curl +1.2% YOY.