FY25 Annual Results Announcement

24 September 2025
(All amounts in NZ$ unless otherwise stated)

KMD Brands FY25 Results

KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) today announces its results for the twelve months ended 31 July 2025 (“FY25”).

FY25 financial summary (vs FY24):
• Group sales up +1.0% to $989.0 million.
• Gross margin(3) down -1.9% of sales to 56.5%.
• Underlying operating expenses(1),(3) up +3.9% to $541.6 million.
• Underlying EBITDA(1) $17.7 million, down -64.7% year-on-year (“YOY”).
• Statutory NPAT loss -$93.6 million. Underlying NPAT(1) loss -$28.3 million.
• Net Working Capital $157.7 million, -$40.6 million lower YOY.
• Net Debt $52.8 million, with significant funding headroom of approximately $235 million.
• No final dividend declared as a result of FY25 operating performance.

Trading update

Total August 2025 sales were +10.5% above last year. DTC sales for the first 7 full weeks to 14 September 2025(6) in a seasonally non-significant trading period:
• Kathmandu +19.4% YOY, (same store sales +22.0% YOY), with targeted promotional intensity in a competitive trading environment.
• Kathmandu gross profit dollars for the first 7 full weeks to 14 September 2025 are +11.0% above the equivalent period last year.
• Rip Curl DTC sales -1.2% YOY (same store sales +1.5% YOY).

Wholesale sales trends are improving, but global uncertainty remains. Forward orders and in-season buying from key accounts support an improving wholesale trend.

Outlook

Group gross margin in the first half of FY26 is targeted at slightly above the second half of FY25 as strategic promotional activity further improves inventory composition ahead of new product launches. The impact of US tariffs announced on 31 July 2025 are embedded in Oboz gross margin and are expected to return to FY25 levels in the second half of FY26.

Group operating expenses are planned to be broadly flat before management incentives in FY26, from the FY25 expense base of $541.6 million, reflecting cost savings and ongoing investment to drive ‘Next Level’ growth opportunities.

KMD Brands recently completed a restructure of the business, designed to deliver immediate cost efficiencies against a cost reset target of $25 million. Annualised cost savings from the organisational restructure are expected to be $5 million, with a one-off restructuring charge of $2 million.

KMD Brands expects EBITDA margin expansion in FY26, delivering stronger margin expansion in the second half of FY26.

Net working capital remains a focus for all brands and the Group is targeting net debt below $40 million at 31 July 2026 (compared to $52.8 million at 31 July 2025).

Following the announcement of 21 future store closures across the Group, we expect to close 14 of these stores in FY26. We have committed to opening 6 new stores (including 3 new Kathmandu flagship concept stores in the first half of FY26) and continue to pursue opportunities in line with our new integrated marketplace and store segmentation strategy.

Capital expenditure for FY26 is targeted to be in the range of $25 million to $30 million.

The following are attached in relation to KMD Brands Limited's Full Year Result for the period to 31 July 2025:
1. Results Announcement
2. Media Announcement
3. Investor Presentation
4. Annual Integrated Report including Financial Statements and Independent Auditor's Report
5. Corporate Governance Statement
6. Modern Slavery Statement
7. GRI & SASB Index

Investor briefing being held today at 8:30am AEST / 10:30am NZST

Brent Scrimshaw (Group CEO), Carla Webb-Sear (Group CFO), and Ben Washington (Deputy Group CFO) will be holding a briefing session for investors and analysts at 8:30am AEST / 10:30am NZST today (Wednesday 24 September).

Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmdfy25.

You may also dial one of the numbers below and provide the conference ID 3372530 to the operator to listen to the meeting.

• Australia - Toll (Sydney) +61 2 8088 0946
• Australia - Toll Free +611800 571 226
• New Zealand - Toll Free +64800450012
• New Zealand - Auckland +649 887 4636
• USA & Canada - Toll-Free (800) 715-9871
• United Kingdom - Toll-Free +44 800 260 6466
• France - Toll-Free +33 801 238862
• Norway - National +47 57 98 94 30
• Spain - Toll-Free +34 800 906909

The webcast will be available on the KMD Brands investor website following the call.

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) Excluding the impact of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships, impairment and onerous contracts.
(3) Prior period restatement: following an accounting system change at the Group’s wetsuit manufacturer, $5.0m of FY24 production labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s FY24 EBITDA or net profit.
(6) Sales and gross profit results for the 7 full trading weeks from Monday 28 July 2025 to Sunday 14 September 2025 are sourced from BI reports and measured at constant currency.

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Announcement PDF