- KMD Brands (KMD), formerly Kathmandu Holdings, is expecting to achieve between NZ$955 and NZ$965 million (A$866 million and A$875 million) in sales for FY22
- The retailer, which comprises three brands including Kathmandu, Rip Curl and Oboz, says that while COVID caused some store closures, trading conditions have improved
- Kathmandu achieved a 7.3 per cent increase in same-store sales over the year that it largely attributes to promotions during the winter season
- Group CEO and MD Michael Daly says KMD is “well-positioned” for growth as global travel recovers and COVID impacts on consumer behaviour and supply chains ease
- KMD shares last traded at $1.01 on July 12
KMD Brands (KMD) is expecting to report total sales of between NZ$955 and NZ$965 million (A$866 million and A$875 million) for the full 2022 financial year.
Formerly Kathmandu Holdings, the global outdoor, lifestyle and sports company comprises three brands including Kathmandu, Rip Curl and Oboz.
Today, KMD delivered a trading update on its financial guidance and the performance of its portfolio brands for FY22.
As announced in March, the company achieved NZ$407.3 million in sales for the first half of FY22, meaning it would need to have made over NZ$547 million in sales for the second half to meet its guidance.
In terms of underlying earnings before interest, tax, depreciation and amortisation (EBITDA), KMD Brands said expected to announce an FY22 result of NZ$88 million to NZ$94 million.
The company said COVID impacted its businesses, particularly in the first half of the year, but trading conditions had since improved despite sporadic store closures due to staff availability.
The Kathmandu business achieved a record performance over its winter promotional period and saw a 7.3 per cent increase in year-to-date same-store sales.
Notably, KMD said that profitability for Kathmandu in the June quarter was expected to be above pre-COVID levels.
Rip Curl also performed well across its retail and wholesale channels, with a 2.1 per cent increase in same-store sales.
The Oboz business, which sells hiking and trail shoes, experienced a three-month closure of its factories in Vietnam in the first half. It then faced shipping congestion and freight delay issues, but production has since recommenced.
“Inventory levels are forecast to be above last year, reflecting decisions taken in the light of ongoing supply chain disruption, to accelerate orders to meet forward wholesale orders and expected retail demand,” KMD CEO and Managing Director Michael Daly said.
“KMD is well-positioned for growth as travel rebounds globally, and COVID impacts on consumer behaviour and international supply chains ease.”
KMD shares last traded at $1.01 on July 12.