A record winter and a return to in-store trading boosted KMD Brands’ sales in its latest full year.
For the 12 months to July 31, sales increased by 6.2 per cent to $868.34 million (NZ $979.8 million) with record demand for Oboz products and continued growth of Rip Curl and Kathmandu sales during the fourth quarter.
Underlying EBITDA was $81.49 million reflecting the impacts of lockdowns across Australia and New Zealand in the early part of the year, and Covid-related supply chain disruptions for its Oboz brand.
The gross profit margin was 58.9 per cent while statutory tax-paid profit was recorded at $32.60 million.
Rip Curl’s total sales were up 9.5 per cent to $475.49 million with solid sales growth across Europe, South Asia and Hawaii.
The company’s Kathmandu brand performance was “underpinned” by a strong winter season. Sales were up 6.8 per cent to $338.02 million rebounding after lockdowns.
Online sales for the brand grew 24.9 per cent representing 18.7 per cent of all sales. Its direct-to-consumer sales accounted for nearly all sales growth, with same-store growth up by 9.1 per cent.
On the contrary, Oboz’s sales fell 18.2 per cent to $54.30 million as prolonged Covid-related factory closures in Vietnam and international freight delays left approximately 40 per cent of orders unfulfilled early in the year, before the fourth-quarter rebound.
Group CEO and MD Michael Daly said that given the impact of Covid is now largely behind the company and international travel was resuming, “we are very focused on executing our growth strategy through expanding our global footprint, investing in digital platforms, leveraging operational excellence, and leading the industry through sustainability and innovation”.
Daly added sales momentum has continued well into the new financial year with August sales up 44.2 per cent year on year.
“With the return of international travel and uninterrupted trade, combined with further strengthening our Rip Curl, Kathmandu and Oboz brands, KMD Brands is well positioned to deliver continued sales and earnings growth in FY23.”
