- Kathmandu (KMD) closes the doors on 66 stores in Western Australia and New South Wales as COVID-19 restrictions tighten across the country
- The latest lockdown-enforced closures come just after 62 stores in Victoria reopen from a two-week lockdown
- At this stage, the company expects the disruptions to business in New South Wales and Victoria alone will cut earnings by around $13 million
- The unfolding situation in Queensland and the four-day lockdown in Western Australia are not accounted for in that estimate
- Shares closed 4.05 per cent lower at $1.42
Kathmandu (KMD) has closed the doors on 66 stores in Western Australia and New South Wales as vast swathes of the country go into COVID-19 lockdowns.
The latest lockdown-enforced closures in WA and NSW come just after 62 stores in Victoria were able to reopen from a two-week lockdown.
At this stage, the company expects the disruptions in New South Wales and Victoria alone will cut underlying earnings before tax interest and amortisation (EBITDA) by around $13 million.
Group sales for the 2021 financial year are also tipped to total around $930 million. The full picture, however, might not yet be clear, as the unfolding situation in Queensland and the four-day lockdown in Western Australia are not accounted for in that estimate.
Group CEO Michael Daly, who was appointed to the role in May, said prior to the recent lockdowns the outdoor clothing and equipment business had been performing strongly.
“COVID-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu. Excluding these impacts, Kathmandu had a solid start to the winter season.
“Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our group benefits from a diversified mix of channel and geographies.”
During the first half of the 2021 financial year, it was the Rip Curl business that did the heavy lifting in the group, contributing NZ$48.7 million (A$45.27 million) in underlying EBITDA, compared to NZ$0.2 million (A$0.19) from Kathmandu and US$2.6 million (A$3.45 million) from Oboz.
Shares closed 4.05 per cent lower at $1.42.