KMD Brands’ sales continue to decline into second half

(Source: Kathmandu/Facebook)

KMD Brands saw continued decline in sales in the first four months of its fiscal second half amid weaker performance across all its segments.

The group’s sales fell 8.4 per cent, with Oboz suffering the largest decline of 21.8 per cent from February to May.

Rip Curl’s sales slid 5.9 per cent while Kathmandu’s sales dipped 8.4 per cent.

“With six weeks of peak trade still to come, we remain focused on optimising our Kathmandu winter and Rip Curl Northern Hemisphere summer results in a challenging consumer environment,” said Michael Daly, KMD Brands CEO and MD.

“We are seeing a prolonged impact of cost-of-living pressures on consumer sentiment globally but particularly in New Zealand, and we continue to respond tactically to competitive market dynamics.”

Daly added that the company is also focused on tightly controlling operational costs, moderating working capital, and maximising cash flows.

For the full fiscal year, KMD forecasts underlying EBITDA of about $50 million.

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