KMD Brands posts strong Q3 sales growth
KMD Brands (ASX:KMD) has reported continued performance improvements for the third quarter of the 2026 financial year, driven by the execution of its "Next Level" strategy.
Total group sales rose by 5.2% year-on-year for the three months ended April 26, contributing to a solid 6.6% increase in year-to-date sales.
The group also achieved a profitability milestone, with its Q3 gross margin climbing to 58.2%—representing a 258 basis point increase YOY, with margin improvements delivered across all core brands.
Brand performance remained largely positive, led by Kathmandu, which posted a 12% sales surge in Q3 and an 8.9% rise in direct-to-consumer same-store sales during the first 12 weeks of the second half.
Surfwear icon Rip Curl also maintained positive momentum with a 4.0% Q3 sales increase, supported by favourable foreign exchange impacts and strong results from North American flagship stores, despite softer momentum following the onset of the Middle East conflict, higher fuel prices, and rising interest rates.
Footwear brand Oboz experienced a temporary setback, with Q3 sales dipping 8.9% YOY, though it managed to keep its YTD performance in positive territory at 0.4%.
