KMD Brands targets NZ$55M earnings rebound
- KMD Brands stated it expects full-year underlying earnings to reach NZ$52-NZ$55 million.
- Kathmandu same-store sales jumped 7.4% during early trading in the new financial year.
- Management targets an additional NZ$10 million in cost savings to support operational recovery.
Outdoor retail group KMD Brands (ASX:KMD) announced an expected full-year underlying earnings recovery to between NZ$52 and NZ$55 million for the 2026–27 financial year.
This earnings target follows a full-year net loss of NZ$414 million to July, which was primarily driven by a post-tax impairment charge.
Early trading for the current financial year showed signs of operational recovery, led by a 7.4% jump in Kathmandu same-store sales due to online demand and solid New Zealand sales.
The business stated that it plans to boost margins using currency hedging, strategic price increases, and an extra NZ$10 million in cost cuts to combat rising inflation.
Following the announcement, the KMD Brands share price was unchanged at $1.63.
The group operates global outdoor apparel and action sports brands, including Kathmandu, Rip Curl, and the Ozmosis outlet chain.
Recent performance across its subsidiaries has diverged, as Rip Curl same-store sales edged up 1% while the Ozmosis retail network continued to face difficult trading conditions and product assortment challenges.
