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.