KMD Brands reports significant sales drop, improved margins

KMD Brands has reported a 66.8% decrease in underlying EBITDA for the six months ended Jan 31 2024.

The company's 1H FY24 financial results also revealed a 14.5% decline in group sales, amounting to $468.6 million.

However, there was some positive news as the gross margin improved by 10 basis points to 58.8% and operating expenses were $15.8m lower compared to the same period last year.

KMD Brands, which owns the Kathmandu, Rip Curl, and Oboz brands, attributed the decrease in sales to weakness in consumer sentiment and challenges in the wholesale channel.

Due to the 1H FY24 operating performance, the company did not declare an interim dividend.

KMD Brands highlighted its strong balance sheet position with net working capital 7.4% lower year-on-year at $226.2m.