Surging online sales proved the highlight of an otherwise challenging year for New Zealand-founded outdoor apparel group KMD Brands.

The company reported a $93.6 million net loss after tax for the current financial year, up from a loss of $48.3 million in the previous year.

Although the group’s sales rose slightly by 1 per cent to $989 million, its gross profit dropped from $571.5 million to $559.3 million year-on-year.

The group’s gross margin decreased from 58.4 per cent to 56.5 per cent, and its EBITDA declined by 64.7 per cent to $50.5 million.

The group’s Rip Curl brand saw a 2.1 per cent lift in total sales to $550.4 million, while its underlying EBITDA dropped 27 per cent to $30.6 million year-on-year.

The company’s online sales rose 10.2 per cent to $41.7 million, and its direct-to-consumer (DTC) total sales, including online,  grew 4.6 per cent, reflecting strong flagship store sales growth in Australia, Hawaii, Europe, and South America.

KMD Brand’s Kathmandu saw a slight sales increase of 0.2 per cent to $361.9 million, with the brand’s Australia sales increasing 0.2 per cent year-on-year, and its New Zealand sales decreasing 2.3 per cent due to a challenging consumer environment.

Kathmandu’s online sales increased by 9.3 per cent to $52.1 million, while its gross margin decreased by 3 per cent, primarily due to increased promotional activity and a highly competitive trading environment.

The group’s Oboz footwear brand reported a 3.5 per cent decrease in sales to $76.6 million, an improvement from a 6.3 per cent decrease in sales in the last financial year.

The brand’s online sales increased 18.3 per cent, a positive response to online promotional periods, and Oboz’s gross margin decreased 3.8 per cent of sales as a result of the clearance of inventory.

For the upcoming financial year, KMD Brands anticipates a slight increase in its gross margin compared to the second half of this fiscal year, with the group expecting an expansion of its EBITDA margin.