Frances Blundell
223 Tuam Street, Christchurch 8011

KMD Brands Limited Analysis


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.


The following information was extracted from KMD Brands Limited's Half Year Results, released 19 March 2024:

1H FY24 financial summary (vs 1H FY23):

  • Group sales decreased by -14.5% to $468.6 million.
  • Gross margin improved by 10 basis points to 58.8%.
  • Operating expenses $15.8 million below last year, down -5.7% YOY.
  • Underlying EBITDA(1) $15.1 million, down 66.8% YOY due to lower sales.
  • Statutory NPAT loss -$9.7 million; Underlying NPAT(1) loss -$6.9 million.
  • Strong balance sheet position. Net working capital -7.4% lower YOY to $226.2 million.
  • No interim dividend declared as a result of 1H FY24 operating performance.

Commenting on the 1H FY24 results, Group CEO & Managing Director Michael Daly said:

Through the first half we continued to experience the effects of weakness in consumer sentiment. Sales were 14.5% below last year's record result; and decreased for all three of our brands.

Weaker consumer sentiment, the warmest winter on record in Australia and an over-reliance on winter weight product led to a disappointing first half for Kathmandu.

Rip Curl and Oboz are cycling record sales last financial year, and while revenues from the direct-to-consumer channel are showing single digit declines, the wholesale channel has been more challenging for both brands as wholesale customers reduce inventory holdings.

In a challenging sales environment, the Group improved gross margin despite currency headwinds, controlled operating costs, and reduced working capital.

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