FY26 Annual Results Announcement

23 September 2026 (All amounts in NZ$ unless otherwise stated) KMD Brands FY26 Results KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) today announces its results for the twelve months ended 31 July 2026 (“FY26”). FY26 financial summary (vs FY25): • Group sales up +6.5% to $1,053.0 million. • Gross margin increased +1.2% of sales to 57.7%. • Underlying operating expenses(1) up +4.4% to $565.2 million. • Underlying EBITDA(1) $42.0 million, up +137.7% year-on-year (“YOY”). • Statutory NPAT loss -$414.4 million, inclusive of a $394m post tax impairment expense. Underlying NPAT(1) loss -$9.0 million. • Net Working Capital $196.4 million, $38.7 million higher YOY. • Net Debt $48.1 million, down $4.7 million YOY. • No final dividend declared. Trading update Direct-to-consumer same store sales (including online) year on year on a constant currency basis for the first seven weeks from Monday 27th July to Sunday 13th September 2026 in a seasonally non-significant trading period: • Kathmandu +7.4% YOY, supported by strong growth in New Zealand, and online channels. • Rip Curl +1.0% YOY. Rip Curl brand stores +4.0% YOY and Ozmosis multi brand stores -12.1% YOY. Rip Curl brand stores grew across multiple geographies and online, while Ozmosis multi-brand stores experienced difficult trading conditions due to product assortment challenges. Outlook The Group remains focused on delivering continued performance improvement in FY27 compared to prior year. Group FY27 guidance(4) is for: • Revenue of between $1,055m and $1,075m. • EBITDA of between $52m and $55m. • Capital Expenditure of between $15m and $16m. Kathmandu sales momentum expected to continue with seasonally relevant product flow and enablement of online fulfilment. Rip Curl sales are expected to benefit in H1 from first deliveries of ‘Next Gen’ designed product in market for Australian peak trade. Ozmosis remediation plan in place including closure of five underperforming stores. Rip Curl and Oboz wholesale order book consistent with prior year with ongoing management of dynamic shipping environment. Group gross margin expansion is anticipated benefiting from foreign exchange hedging already in place and strategic price increases. EBITDA reflects revenue expectations with a further $10m of annualised cost saving initiatives already underway to mitigate inflationary pressure. These cost initiatives for FY27 were taken to ensure the business maintains its EBITDA growth trajectory in a challenging global consumer operating environment. The Group continues to focus on the optimisation of its store network as part of the Next Level integrated marketplace strategy. Capital expenditure is reduced as technology projects moderate and targeted store capital expenditure is prioritised. Depreciation is expected to be in the range of $40 - $41m. Business review conclusion and outcomes KMD Brands has made significant progress in strengthening and simplifying the Group, and the Board remains confident that disciplined execution of the Next Level strategy provides a clear pathway to improved performance and shareholder value as demonstrated by FY26 operating performance. As part of the comprehensive business review initiated in May 2026, the Board has considered the Group’s portfolio, capital requirements and a range of potential value-creation opportunities. The review was undertaken with independent financial advisory from Deloitte and Barclay & Co, and legal advice from Chapman Tripp. The review was conducted objectively and without a predetermined outcome. The review resulted in actions to simplify the Group and enhance its financial flexibility. These include the decision to divest the Group’s manufacturing facility in Southeast Asia. The Group also tested external interest in Rip Curl’s multi-brand retail chain, Ozmosis. No proposal emerged that offered greater value than continuing to rationalise the chain and improve the profitability of the remaining store fleet. The review also included a commitment to ongoing cost reduction through the immediate offshoring of select Group shared services. Throughout the review process, the Board has received and considered a number of indicative approaches from external parties and has determined that further engagement with a limited number of those parties is appropriate. Consistent with its responsibilities to shareholders, the Board will assess whether any proposal could deliver greater value than continued execution of the Group's Next Level strategy. The approaches are indicative, non-binding and incomplete, no decision has been made, and there is no certainty that any proposal or transaction will result. This engagement does not change the Group’s strategy, priorities or day-to-day focus. Management remains focused on delivering the FY27 plan, improving profitability, generating free cash flow and reducing leverage. The Board will continue to support execution of the strategy while carefully assessing any credible alternative that may deliver superior shareholder value and will update the market in accordance with its continuous disclosure obligations. The following are attached in relation to KMD Brands Limited's Full Year Result for the period to 31 July 2026: 1. Results Announcement 2. Media Announcement 3. Investor Presentation 4. Annual Report including Financial Statements, Independent Auditor's Report and Corporate Governance Statement Investor briefing being held today at 8:30am AEST / 10:30am NZST Brent Scrimshaw (Group CEO), and Carla Webb-Sear (Group CFO) will be holding a briefing session for investors and analysts at 8:30am AEST / 10:30am NZST today (Wednesday 23 September). Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmdfy2026. You may also dial one of the numbers below and provide the conference ID 1914594 to the operator to listen to the meeting. • Australia - Toll (Sydney) +61 2 8088 0946 • Australia - Toll Free +61 1800 571 226 • New Zealand - Toll Free +64 800 450 012 • New Zealand - Auckland +64 9 887 4636 • USA & Canada - Toll-Free (800) 715 9871 • United Kingdom - Toll-Free +44 800 260 6466 • France - Toll-Free +33 801 238 862 • Norway - National +47 57 98 94 30 • Spain - Toll-Free +34 800 906909 The webcast will be available on the KMD Brands investor website following the call. This announcement has been authorised for release to NZX / ASX by the Board of Directors of KMD Brands Limited. - ENDS - For media and investor enquiries, please contact enquiries@kmdbrands.com or Frances Blundell, Chief Legal & ESG Officer and Company Secretary companysecretary@kmdbrands.com (1) Excluding the impact of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships, impairment and onerous contracts. (4) Subject to no adverse change in operating conditions, including future economic headwinds and AUD/NZD exchange rates impacting NZD reporting currency. Guidance is underlying and excludes one-off items and is inclusive of probability weighted short-term management incentives ($6m).