Outdoor brands retailer KMD Brands has reported lower sales in the first four months of FY24 reflecting weaker consumer sentiment.
Sales fall 12.5 per cent year over year in the four months that ended November 30, with flagship brand Kathmandu’s sales plunging 21.6 per cent due to weakness in rainwear and insulation categories in Australia.
Rip Curl and Oboz’ sales tumbled 5.7 per cent and 18.2 per cent, respectively, as wholesale sales for both brands declined, with retailers reducing inventory in the short term.
“We remain focused on optimising gross margin, controlling operating costs, and reducing working capital for all of our brands,” said Michael Daly, KMD Brands CEO and MD.
“We continue to make progress towards our working capital target of 18 per cent of sales for the full year, which is expected to drive strong cash flow generation in the second half year.”
The company’s underlying EBITDA during the period fell by $16 million while working capital slid 10.2 per cent.