KMD Brands posts a net loss amid weaker consumer sentiment

KMD Brands swung to a net loss of $9.7 million in the fiscal first half amid lower sales, citing weaker consumer sentiment.

Group revenue fell 14.5 per cent to $468.6 million, with the Kathmandu brand’s revenue sliding 21.5 per cent to $152.3 million.

Rip Curl’s revenue declined 9.2 per cent to $278.3 million while Oboz’s sales plunged 20 per cent to $38 million, with both brands suffering from lower wholesale sales during the period.

“In the second half the group will be cycling less challenging sales performance than last year, particularly Kathmandu in the fourth quarter,” said KMD Brands CEO and MD Michael Daly.

“Improving Kathmandu sales performance is our immediate priority as we approach the key winter trading period.”

Daly said the company anticipates progress in the second half of the next fiscal year with the launch of new products, quick-to-market programs, elevated visual merchandising, improved personalisation, and expanded third-party brand strategy.

The company also expects the wholesale customer inventory reduction cycle to end this fiscal year, expecting Rip Curl and Oboz to recover in FY25.

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