KMD Brands Limited - Trading Update

20 August 2024
(All amounts in NZ$ unless otherwise stated)


KMD Brands Preliminary Result


KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) provides the following unaudited preliminary results for the year ending 31 July 2024 (“FY24”):

TOTAL SALES CHANGE YOY

1H FY24 Aug 23 to Jan 24
Rip Curl -9.2%
Kathmandu -21.5%
Oboz(1) -20.0%
Group -14.5%

Q3 FY24 Feb 24 to Apr 24
Rip Curl -7.6%
Kathmandu -11.1%
Oboz(1) -28.7%
Group -11.1%

Q4 FY24 May 24 to Jul 24
Rip Curl -2.4%
Kathmandu -6.9%
Oboz(1) -7.9%
Group -5.0%

FY24 Aug 23 to Jul 24
Rip Curl -7.3%
Kathmandu -14.5%
Oboz(1) -20.0%
Group -11.2%

• Rip Curl and Kathmandu sales have shown continued improvement on first half sales trends during both the third and fourth quarters of FY24, as outlined above.
• Kathmandu sales trends, relative to FY23, continued to improve in a challenging consumer environment, with enhanced in-store execution and new products. Australia (-4.5%) performed significantly better than New Zealand (-16.5%) through the key fourth quarter winter trading period.
• Rip Curl direct-to-consumer (“DTC”) sales continued to outperform the wholesale channel. DTC sales for FY24 were -2.8% below last year’s record sales result, compared to the wholesale channel -13.0% below last year as wholesale customers continue to reduce their inventory holdings.
• Oboz online sales continued to deliver strong year-on-year growth in FY24, +31.7% above last year. Wholesale sales for FY24 were -23.1% below last year’s record sales.
• Gross margin decreased -30 basis points (-0.3% of sales) to 58.8% for FY24, driven by increased promotional intensity through the fourth quarter. Operating costs were tightly controlled, benefiting from restructuring implemented last year, and lower variable costs associated with lower sales.
• The Group confirms that underlying EBITDA(2) is expected to be in the range of $49 million to $51 million for FY24.
• Group inventory at 31 July 2024 was approximately $25 million below the same time last year, resulting in Net Working Capital being approximately $21 million lower year-on-year.
• Net debt at 31 July 2024 was $60 million, with significant funding headroom of approximately $230 million.

The Group will release its audited results for the year ending 31 July 2024 on Wednesday 25 September 2024.

This announcement has been authorised for release to NZX / ASX by the Board of Directors of KMD Brands Limited.

- ENDS -

For further information, whether an investor or media enquiry, please contact: [email protected]

(1) Timing of certain wholesale dispatches changed year-on-year from April to May, impacting Q3 and Q4 variances.

(2) Earnings before interest, tax, depreciation, and amortisation, excluding the impact of IFRS 16, software as a service accounting, restructuring, and one-off non-cash items.

---

Announcement PDF