KMD Brands has seen its sales grow, buoyed by the success of outdoor-clothing retailer Kathmandu. 

The group, comprising Kathmandu, Rip Curl, and Oboz saw a sales increase of 7.9 per cent in the five months ending December 25. Kathmandu led the way with a 12.9 per cent year-on-year increase.

“We are pleased with the group’s early progress in the execution of its next level transformation strategy, in particular trading over the critical Black Friday and Christmas periods,” Brent Scrimshaw, CEO and MD of KMD Brands, said.

KMD Brands said it expects first-half earnings before interest, taxes, depreciation, and amortisation to be in the range of $8 million to $11 million, an improvement from $3.9 million the year prior. Its refinancing plan has extended its debt facility term to April 2027, with net debt at January 31 expected to be in the range of $85 million to $90 million.

Scrimshaw added: “Whilst we are still at the early stages of our transformation, we are encouraged by the improved performance of Kathmandu, with an adjusted flow of fresh innovation planned in the second half, which we believe will strengthen our ability to expand gross margin over time. 

“We continue to focus on optimising the balance between sales and gross margin while actively managing our inventory investment.”

The group will release its full, half-year results for the 2026 financial year on March 25.