KMD Brands has released the details of its equity raise and earnings performance, with strong ANZ sales growth doing little to stave off the challenges that the Kathmandu owner faces.

After a six-day delay, the dual-listed company reported a year-on-year increase in its half-year sales.

The 7.3 per cent increase across the group took its sales to $507.6 million, with a gross margin of 58.6 per cent. Led by Rip Curl, which recorded $292.6 million in sales, Kathmandu recorded $176.8 million, while Oboz recorded $38.1 million.

In New Zealand, KMD said an 8.9 per cent year-on-year increase was helped by a strong Black Friday and Cyber Monday period.

These figures, however, did little to negate the company’s losses, which grew to $13.1 million after tax. KMD said its net debt as of January 31 was $94.4 million.

The group also shared the details of its capital raise, the cause behind the delay in its earnings update, and the pause in trading. The deal put forward was a $65.5 million deal, including a nearly 70 per cent discount in its per-share price to five cents. Both Goldman Sachs and Forsyth Barr are underwriting the capital raise.

At the same time, David Kirk – the group’s chairman – announced his resignation.

“With the balance sheet now strengthened through the debt refinancing and the launch of the equity raise, KMD Brands is well-positioned to continue executing its next level strategy,” Kirk said.

“Having worked closely with the board and management through this critical phase, and been on the board for 13 years, I believe this is the right time to signal my intention to step down as chairman in the coming months.”