{"id":355870,"date":"2026-03-30T22:46:07","date_gmt":"2026-03-30T22:46:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/355870\/"},"modified":"2026-03-30T22:46:07","modified_gmt":"2026-03-30T22:46:07","slug":"kmd-brands-reports-net-loss-amid-equity-raise-chairman-david-kirk-resigns","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/355870\/","title":{"rendered":"KMD Brands reports net loss amid equity raise, chairman David Kirk resigns"},"content":{"rendered":"

The company previously raised $180m in 2019 to buy Rip Curl and a further $207m during Covid in 2020.<\/p>\n

KMD reported total group sales of $505.4m for the half-year, up 7.3% from $470.9m in the prior corresponding period.<\/p>\n

The group\u2019s earnings before interest, tax, depreciation and amortisation (ebitda) also lifted, up 20% from $52.7m to $63.3m.<\/p>\n

However, it posted an operating loss of $1.7m with gross margin down 1.2% from 58.0% to 56.8%.<\/p>\n

\"KMDKMD Brands director Brent Scrimshaw said Rip Curl had navigated “more volatile” trading conditions.<\/p>\n

The reported net loss of $13.1m was a 36.8% improvement on its previous first-half loss of $20.7m.<\/p>\n

KMD Brands group chief executive Brent Scrimshaw said the group had accelerated the pace and quality of execution since launching its \u201cNext Level\u201d strategy.<\/p>\n

\u201cStrong early progress has been made against our key initiatives, giving us further conviction in our potential. We\u2019re particularly encouraged by the improved performance of Kathmandu, which has delivered double-digit same-store sales growth for the first time in over two years,\u201d Scrimshaw said.<\/p>\n

\u201cIt\u2019s also pleasing to see consumers responding positively to our accelerated product freshness, flow and assortment, along with a renewed focus on innovation.\u201d<\/p>\n

Brand breakdown<\/p>\n

Kathmandu led the group sales momentum in the first half, with sales increasing by 12.3% from $156.8m to $176.1m.<\/p>\n

Sales lifted both in Australia, up 10.2% year-on-year, and in New Zealand, up 8.9% year-on-year, with online sales in line with last year at $20.6m.<\/p>\n

Same-store sales (including online) also lifted by 12.8% year-on-year, with the key Black Friday and Christmas trading periods cycling a good result last year.<\/p>\n

However, gross margin for the brand fell by 1.5% of sales, with the group pointing to a focus on selling through aged inventory in the first quarter, while maintaining competitive promotional intensity through the second quarter.<\/p>\n

Total inventory for the half ended $9.8m lower than last year, with underlying operating expenses reduced year-on-year following a strategic cost reset and ongoing cost discipline.<\/p>\n

Kathmandu made an operating loss in the half of $10.2m, although it was a 53.9% improvement on its $22m loss in the prior corresponding period.<\/p>\n

The group\u2019s largest brand, Rip Curl, had its sales lift by 4.6%, up from $278.5m to $291.4m.<\/p>\n

The group said the result was helped by the year-on-year movement in foreign exchange rates used to convert global sales to New Zealand dollar reporting currency. On a constant currency basis, Rip Curl sales were up 0.3%.<\/p>\n

Wholesale sales increased by 9.8% year-on-year, supported by strong demand in Europe and North America.<\/p>\n

Direct to consumer (DTC) sales increased by 1.9%, with strong sales for North America, offsetting a challenging market during the Southern Hemisphere peak summer period.<\/p>\n

Online sales also lifted, up 6.7% to $22.5m, while DTC same-store sales grew by 1.5%.<\/p>\n

However, gross margin for the brand decreased, down 1.2% due to elevated promotional activity.<\/p>\n

As for footwear brand Oboz, it had total sales lift 6.5% from $35.6m to $38m, driven by wholesale sales increases of 7.5%.<\/p>\n

Online sales for the brand increased by 0.9%, impacted by lower close-out inventory levels year-on-year.<\/p>\n

The group plans to move Oboz\u2019s website on to the group online trading platform, as the brand\u2019s digital marketing is refined with new agency partners.<\/p>\n

Unlike Kathmandu and Rip Curl, Oboz\u2019s gross margin lifted over the half, up 0.2%.<\/p>\n

\"KMDKMD Brands chairman David Kirk has confirmed his intent to step down from his position in the coming months.<\/p>\n

Outlook<\/p>\n

In the group\u2019s trading update for the first six weeks of the second half, DTC same-store sales (including online) for Kathmandu lifted by 11.1%, combined with gross margin improvement of 50 basis points.<\/p>\n

The group said the momentum had continued for the brand as it heads into the key trading period of autumn and winter.<\/p>\n

Sales for Rip Curl also grew during the period, lifting by 1.2% year-on-year. No update was given for the first six weeks of Oboz\u2019 trading.<\/p>\n

Wholesale order books for the second half are in line with last year for Rip Curl and Oboz, with the Europe and North American summer seasons to come.<\/p>\n

Looking ahead, the group said it remains focused on delivering continued improvement compared with the prior year.<\/p>\n

But in a well-telegraphed decision, KMD Brands chairman David Kirk has confirmed his intent to step down in the coming months.<\/p>\n

Kirk said the group\u2019s refreshed leadership team had delivered against its clear objectives over the last six months.<\/p>\n

\u201cAfter securing a short-term extension to our debt facilities in January 2026, it was important for our continued execution to strengthen our balance sheet, accelerate our path to our leverage target and secure a longer-term debt facility to support our ongoing transformation,\u201d he said.<\/p>\n

\u201cWith the balance sheet now strengthened through the debt refinancing and the launch of the equity raise, KMD Brands is well-positioned to continue executing its Next Level strategy.<\/p>\n

\u201cHaving worked closely with the board and management through this critical phase, and been on the board for 13 years, I believe this is the right time to signal my intention to step down as chairman in the coming months.\u201d<\/p>\n

The KMD Brands board has commenced an orderly succession process, with more details likely to be shared at the group\u2019s next annual meeting.<\/p>\n

The board did not declare an interim dividend for the first half.<\/p>\n

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"The company previously raised $180m in 2019 to buy Rip Curl and a further $207m during Covid in…\n","protected":false},"author":2,"featured_media":355871,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[74,534,650,138,1288,37462,6284,16492,181,19277,6097,219,1137,12938,96972,183765,18153,649,2225,2510,11781,111,43,139,69,6185,2515,766,17363,5909,12860,38291,1361],"class_list":["post-355870","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-after","tag-amid","tag-brands","tag-business","tag-capital","tag-chairman","tag-david","tag-delays","tag-details","tag-discounted","tag-down","tag-economy","tag-equity","tag-filed","tag-halfyear","tag-kathmandus","tag-kirk","tag-kmd","tag-loss","tag-multiple","tag-net","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-parent","tag-raise","tag-reports","tag-resigns","tag-results","tag-revealed","tag-stepping","tag-that"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/355870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=355870"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/355870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/355871"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=355870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=355870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=355870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}