Kathmandu’s online sales grow at nearly three times the rate of its stores

Robert Stockdill

20th Sep 2022

Buoyed by a loyalty program membership of nearly 2 million, the outdoor wear brand Kathmandu is reaping the benefits of investing in its online offer. 

Kathmandu’s online sales soared 24.9 per cent last financial year and now account for 18.7 per cent of its overall revenue, according to figures revealed in the annual results filing of its parent KMD Brands. In contrast, sales through its physical stores grew by a more modest 9.1 per cent.  

The sales result was supported by continued investment in the long-term value of the brand and an embedded loyalty base of close to 2 million members, the company said in its earnings statement.

Group CEO and MD Michael Daly said KMD plans to continue to invest in digital platforms to drive sales growth. 

For the 12 months to July 31, KMD Brands’ group sales increased by 6.2 per cent to a record $868 million with strong demand for Oboz products and continued growth of Rip Curl and Kathmandu brand sales during the fourth quarter.

Underlying EBITDA was $81.49 million reflecting the impacts of lockdowns across Australia and New Zealand in the early part of the year, and Covid-related supply chain disruptions for its Oboz brand.

“The strength of our brands was evident in record group sales, with a strong return to sales growth across all of our brands in the final quarter,” said Daly. 

“In addition, we made significant progress across each of our strategic pillars to build global brands, elevate our digital presence, leverage our operational excellence, and be a leader in ESG.”