KMD Brands has reported flat sales for the fiscal first half despite improvements in its direct-to-consumer business.
The group’s sales edged up 0.5 per cent to $428.5 million for the six months ended January 31. Management said DTC sales improved across all brands, with online sales achieving double digit growth.
Meanwhile, wholesale sales are taking longer to recover, as wholesale accounts remain cautious on pre-season commitments in a challenging market.
Sales were up 0.1 per cent at Rip Curl, up 3 per cent at Kathmandu and down 6.3 per cent at Oboz.
On the bottom line, underlying EBITDA fell 74 per cent to $3.5 million Underlying NPAT loss was $14.7 million compared to last year’s loss of $6.3 million.
Net debt at the end of the period was $69.3 million, down $18.2 million year-on-year.
“We are seeing short-term gross margin pressure for all brands in a highly competitive global market,” said outgoing Group CEO Michael Daly. “However, our focus remains on growing gross margin in the medium-term as markets improve.”
“We believe that with our portfolio of iconic global outdoor brands and leadership in sustainability, we remain a unique investment proposition and well -placed for the future,” added incoming Group CEO and MD Brent Scrimshaw.
