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- Kathmandu (KMD) saw its sales jump 12 per cent in H1 FY21, primarily due to the successful integration of Rip Curl
- However, when broken down, Rip Curl sales were up 21 per cent while Kathmandu sales were down 30 per cent
- Additionally, Kathmandu expects EBITDA to be between $47 million to $49 million
- During the half-year, 60 Greater Melbourne stores were closed for more than 11 weeks and 14 Auckland stores were closed for over two weeks
- As a result, online sales increased from 8.9 per cent in H1 FY20 to 13 per cent H1 FY21
- Meanwhile, Kathmandu’s airport stores in Australia and Rip Curl stores in Bali, Europe and Hawaii are still being negatively impacted by COVID-19 and border closures
- Shares in Kathmandu are down 2.02 per cent and are trading at $1.22
Kathmandu (KMD) saw its sales jump 12 per cent in H1 FY21, primarily due to the successful integration of Rip Curl.
However, when broken down, Rip Curl sales were up 21 per cent while Kathmandu sales were down 30 per cent.
Kathmandu first announced its intention to purchase Rip Curl in September 2019 for $350 million to increase its international presence.
Additionally, Kathmandu expects earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range between $47 million to $49 million.
Due to the COVID lockdowns and store closures, online sales increased from 8.9 per cent in H1 FY20 to 13 per cent H1 FY21.
During the half, 60 Greater Melbourne stores were closed for more than 11 weeks and 14 Auckland stores were closed for over two weeks.
Unfortunately, Kathmandu’s airport stores in Australia and Rip Curl stores in Bali, Europe and Hawaii are still being negatively impacted by COVID-19 and border closures.
“Our improved first-half operating profit underlines the resilience of our group and validates the diversification strategy, launched through the successful acquisitions and integrations of Rip Curl and Oboz,” outgoing CEO Xavier Simonet said.
“Kathmandu enjoyed robust sales growth in camping categories with renewed interest in local travel and adventure activities with Australia and New Zealand. However, its performance was heavily impacted by low demand for insulation and rainwear resulting from the lack of international travellers to the northern hemisphere,” he added.
Kathmandu is planning on releasing its full year results on March 23.
Shares in Kathmandu are down 2.02 per cent and are trading at $1.22 at 1:01 pm AEDT.
