KMD Brands Records Strengthened Portfolio Performance with ‘Next Level’ Market Strategy

About this update from Kmd Brands Limited

KMD Brands ASX:KMD has recorded strengthened performance across retail labels Rip Curl, Kathmandu, and Oboz as it continues to rollout its “Next Level” business improvement strategy.Total global direct to consumer sales of Rip Curl clothing and products have grown year-on-year, benefiting from favorable foreign exchange impacts within a dynamic marketplace.Sales momentum softened following the onset of the Middle East conflict, with higher fuel prices and rising interest rates impacting global consumer sentiment, however the brand’s North American flagship stores continued to deliver strong sales results.Gross margin for the three months to end March improved by 202 basis points (bps) year-on-year due to promotional cadence and 62bps compared to the first half of the year.Defending significant market share gains in a more competitive North American marketplace remains a priority for Rip Curl in the fourth quarter.Solid Kathmandu PerformanceTotal sales of Kathmandu outdoor clothing and products increased by 12% despite the closure of one store during the period and a net reduction of seven stores compared to the same time last year.Same store sales (including online) increased by 12.6% year-on-year, continuing a sales momentum in Australia and New Zealand as consumers responded positively to improved product innovation, assortment, and flow.The third Kathmandu “next-gen concept store” opened in Melbourne this month, showcasing a return to product innovation and seasonal brand stories, offering enhanced product assortments and promoting a simplified in-store navigation to elevate the customer experience.Kathmandu delivered growth across key product categories during the quarter, demonstrating that KMD’s product-led recovery is beginning to resonate with customers, with continued growth in member and non-member sales in the lead-up to the key winter trade period.Kathmandu’s gross margin for the period improved 233bps year-on-year, driven by a diversified product mix and further refinement of its markdown management strategy.Oboz Sales DownturnTotal sales of Oboz footwear dropped 8.9% during the period, impacted by wholesale shipment timing.The previous quarter, by comparison, benefited from earlier shipments of new-season styles to fulfill accelerated demand and meet expanded partner door growth.KMD expects sales to return to year-on-year growth in the next ...

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