KMD Brands profit flat as sales break $1b

By earthnews
1 year Ago

KMD Brands profit flat as sales break $1b

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KMD Brands, formerly Kathmandu, rebranded in 2022.
Photo: RNZ / Nate McKinnon

The clothing and sporting goods retailer KMD Brands’ full-year profit is down slightly despite record sales and an improved profit margin.

The company, formerly known as Kathmandu, also owned Rip Curl and footwear brand Oboz.

Key numbers for the 12 months ended July compared to a year ago:

Net profit $36.6m vs $36.8m
Revenue $1.1b vs $979.8m
Underlying profit $200.1m vs $179.9m
Gross margin 59.1% vs 58.9%
Final dividend 3 cents a share vs 3cps

“KMD Brands has achieved record sales of over $1.1 billion dollars in our first year of uninterrupted trade post-pandemic, a significant milestone for the group,” chief executive Michael Daly said.

“Strong sales growth was delivered across all key geographies, with Rip Curl and Oboz achieving record sales.”

While Kathmandu sales grew strongly over the first three quarters of the year, Daly said fourth-quarter sales were more challenging with increased cost-of-living pressures softening consumer sentiment, and the warmest winter on record in Australia.

“Group results were underpinned by strong omni-channel sales growth from all brands.

“Customers returned to shopping in stores, with retail store sales increasing 17.5 percent.”

Daly said the return to in-store shopping had seen a drop in online sales, though they remained “significantly above pre-pandemic levels”.

Wholesale sales rose 11 percent.

Daly said the balance sheet was healthy with low net debt and improving inventory levels.

“We are well positioned as we begin FY24.

“Despite the challenging consumer sentiment, we expect tailwinds with the continued return to travel, positive impact from the launch of innovative products and the outdoor lifestyle trend post-pandemic.”