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Sep 21, 2022
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KMD Brands posts record sales on strong Kathmandu, Rip Curl revenues

Published
Sep 21, 2022

KMD Brands, formerly known Kathmandu Holdings, announced on Tuesday record revenues for the fiscal year 2022, on the back of strongs gains across its Kathmandu and Rip Curl brands.

The New Zealand-headquartered group said sales were up 6.2% to NZ$979.8 million (US$577.66 million), marking a record sales year for KMD Brands. The company cited continued growth in Rip Curl sales, its highest-ever Kathmandu sales in the fourth quarter, and record order demand for its Oboz products, for the record-breaking full-year growth.

Rip Curl'stotal sales were up 9.5% to $536.8 million for the year - Rip Curl


"KMD Brands continued to deliver strong results over the past 12 months while navigating substantial Covid challenges in the first half. The strength of our brands was evident in record group sales of nearly $980 million, with a strong return to sales growth across all of our brands in the final quarter," said group CEO and managing director, Michael Daly.

"In addition, we made significant progress across each of our strategic pillars to build global brands, elevate our digital presence, leverage our operational excellence, and be a leader in ESG," continued Daly.

“Rip Curl achieved sales growth across all channels and key international regions, particularly Europe, Hawaii and South-East Asia, as we continued to invest in the long-term value of the brand. Rip Curl’s wholesale order books remain significantly above pre-Covid levels, allowing us to better manage supply chain disruption through near-term inventory investment.”

By brand, Rip Curl's total sales were up 9.5% to $536.8 million, while Kathmandu total sales were up 6.8% to $381.6 million, with a strong rebound after lockdowns. Oboz sales fell 18% to $61.3 million during the twelve months, adversely affected by the three-month Covid closure of Vietnam factories and compounded by international freight delays, with approximately 40% of annual orders unable to be fulfilled. 

​The company said EBTIDA was down 16% to $92million, from $109.5 millions a year ago. The decline reflected the impact of Q1 Australasian lockdowns and Oboz supply chain Covid disruption. Total profit was $36.8 million, down 40%, the company added.

​“With the effects of Covid now largely behind us and international travel returning, we are very focused on executing our growth strategy through expanding our global footprint, investing in digital platforms, leveraging operational excellence, and leading the industry through sustainability and innovation," added Daly.

Looking ahead, KMD said momentum from the strong final quarter of FY22 has continued. August sales for the group were up 44.2% on August 2021, and 10.3% above pre-Covid August 2019.

“With the return of international travel and uninterrupted trade, combined with further strengthening our Rip Curl, Kathmandu and Oboz brands, KMD Brands is well positioned to deliver continued sales and earnings growth in FY23," concluded Daly.
 

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