KMD Brands sales show steady improvement

Surfer wearing a Rip Curl T-shirt
However, while the group’s DTC sales showed resilience, wholesale remain under pressure. (Source: Rip Curl)

KMD Brands has boosted direct-to-consumer (DTC) sales amid a cautious retail environment. 

For the period ending December last year, the group reported a 2.4 per cent increase in global DTC sales for Rip Curl, supported by strong growth during the Christmas trading period and additional stores operating year-over-year. 

Kathmandu’s DTC sales remained steady compared to the prior year, with improvements seen in recent months, particularly in New Zealand. 

Meanwhile, Oboz saw strong year-over-year growth in online sales during Black Friday and Christmas promotions.

“Direct-to-consumer sales trends continue to improve for all three of our brands, while the wholesale market is taking longer to recover,” said Michael Daly, MD and Group CEO.

 “We continue to focus on delivering positive sales growth, maximizing cash flows, and reducing inventory.”

However, while the group’s DTC sales showed resilience, wholesale sales remained under pressure.

Rip Curl’s wholesale sales fell 13.4 per cent, and Oboz’s were down 12.1 per cent year-over-year. 

Online sales emerged as a key driver for the group, with year-to-date sales up 18.4 per cent compared to the previous year.

The group’s underlying EBITDA for the first half of FY25 is expected to be between $1 million and $3 million, compared to $15.1 million in the same period last year. 

KMD Brands expects further improvements in sales growth during the second half of the financial year.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.