KMD Brands has swung to a net loss amid lower sales across all brands in the last fiscal year.

The company’s underlying net loss stood at NZ$48.3 million as sales fell 11.2 per cent to $979.4 million.

Rip Curl’s sales declined 7.3 per cent to $538.9 million while Kathmandu’s decreased 14.5 per cent to $361.1 million. Oboz’s sales slid 20 per cent to $79.4 million.

“Following Kathmandu’s disappointing first half result, sales trends relative to FY23 improved through the third and fourth quarters, with enhanced in-store and online execution and the launch of new products,” said Michael Daly, CEO and MD of KMD Brands.

“Rip Curl and Oboz cycled record sales last financial year, with direct-to-consumer sales outperforming the wholesale channel this year.”

Daly, however, noted that both Rip Curl and Oboz have been struggling with challenges in the wholesale channel, which reduced inventory to manage risks.

“We remain cautious on consumer sentiment, given the challenging global macroeconomic environment,” said Daly.

“Global inflationary pressures are easing, but it will take time to directly impact consumer spending.”

For the first eight weeks to September 22, Kathmandu Australia direct-to-consumer sales rose 2.1 per cent year over year while New Zealand DTC sales plunged 23.2 per cent.

Rip Curl’s global DTC sales, meanwhile, dropped by about 5 per cent.

The company also witnessed wholesale forward orders moderating from double-digit declines last fiscal year to single-digit declines in the first half of the current fiscal year.