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Kathmandu’s first-half sales improve as restrictions ease

(Source: Bigstock)

Kathmandu Holdings has reported a strong first half despite disruptions from the Omicron outbreak, with the Kathmandu and Rip Curl brands growing, though footwear chain Oboz remains impacted.

For the 26 weeks till January 30, the group saw total unaudited sales revenue hit $405 million, with gross margins improving in the second half. However, after almost 12,000 lost trading days, earnings are expected to range between $9 million and $11 million.

Same store sales at the Kathmandu brand were up 2.8 per cent despite store closures, with the second quarter delivering 15.1 per cent growth after a difficult first quarter.

Rip Curl’s same-store growth sales were up 3 per cent in the second quarter, reflecting a return among the surf category, while factory shutdowns of Oboz product suppliers in Vietnam impacted meeting customer demand with 50 per cent of orders left unfulfilled. The group aims to make a gradual recovery from the supply chain constraints in the second half. 

“Covid continues to cause ongoing disruptions to our consumers, employees and suppliers globally, most recently the Omicron variant,” said Kathmandu Group chief executive Michael Daly.

“The disruption has resulted in reduced retail footfall, temporary state closures, and staffing constraints in many locations.”

Despite these challenges, Daley notes that wholesale demand for the brand’s products remains at record levels.

“Sales conversion has increased as customers have shopped with purpose, and our online channels continue to grow,” he said. 

The company has invested $14 million throughout the first half to support brand marketing and further expansion into international markets. 

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