KMD Brands (ASX:KMD) recorded a turnaround in its 2026 financial year performance, spearheaded by a major sales recovery at Kathmandu.
The group revealed a 7.9% increase in total sales, with Kathmandu leading the charge with a standout 12.9% gain.
The momentum was particularly evident during the critical Black Friday and Christmas periods, where Kathmandu's direct-to-consumer sales surged across both Australia and New Zealand.
Rip Curl recorded a 5.6% increase in total sales, supported by strong performance in North America, while footwear brand Oboz saw a massive 21% jump in the most recent two-month window.
KMD expects its H1 FY26 underlying EBITDA to land between NZ$8 million and NZ$11 million, more than double the NZ$3.9 million recorded in the same period last year.
Despite the sales growth, the group's gross margin dipped slightly to 56.7%, impacted by high levels of promotional activity and efforts to clear older inventory.
To support its "Next Level" transformation strategy, the company has also extended its debt facility to April 2027 and reduced total bank facilities to approximately NZ$283 million.
CEO Brent Scrimshaw expressed confidence in the company's trajectory, noting that a fresh wave of product innovation planned for the second half of the year will focus on strengthening margins and optimizing inventory.