Outdoor and lifestyle retailer KMD Brands has seen a dip in its group sales of 0.5 per cent over a 10-month period, as of the end of May this year. 

Although the group’s Rip Curl brand saw a sales increase of 0.4 per cent, its Kathmandu sales dropped by 1 per cent, and Oboz experienced a 4.1 per cent decline. 

The group’s online sales rose 10.7 per cent year-to-date compared to the same period last year. 

Kathmandu’s upgraded online platform saw a 26.1 per cent increase in online sales as compared to last year, with new online trading platforms for Rip Curl and Oboz set to launch in the first half of next year. 

KMD Brands’ group gross margin for this year was 140 basis points lower compared to the same period last year, with all brands focused on generating a higher cash flow given the competitive global market. 

The group anticipates that the continuous changes in the US’s tariff rates will impact the year’s EBITDA by approximately $1 million, predicting a range of between $15 million and $25 million. 

“While the volatility of Kathmandu’s sales performance is frustrating, we acknowledge that unseasonably warm weather in Australia, including Victoria’s warmest Autumn on record, has negatively impacted sales,” said group CEO and MD, Brent Scrimshaw. 

“Kathmandu’s significant sales improvement, including strong online momentum in recent weeks, reinforces our enduring brand health and strengthens our confidence in the future growth opportunity.”