KMD Brands reports significant online boost, but still ends year in the red

Darshana Gupta

26th Sep 2025

Surging online sales proved the highlight of an otherwise challenging year for New Zealand-founded outdoor apparel group KMD Brands.

The company’s online sales rose 10.2 per cent to $36.9 million, and its direct-to-consumer (DTC) total sales, including online,  grew 4.6 per cent, reflecting strong flagship store sales growth in Australia, Hawaii, Europe, and South America.

Kathmandu’s online sales increased by 9.3 per cent to $46.2 million, and its gross margin decreased by 3 per cent, caused by increased promotional activity and a highly competitive trading environment.

The group’s footwear brand, Oboz, saw online sales increase 18.3 per cent, a positive response to online promotional periods, and Oboz’s gross margin decreased 3.8 per cent of sales as a result of the clearance of inventory.

Despite the solid sales growth, KMD Brands reported an $83 million net loss after tax for the financial year, up from a loss of $42.8 million last year.

Although the group’s sales rose slightly by 1 per cent to $876.4 million, its gross profit dropped from $506.5 million to $495.6 million year-on-year.

The group’s gross margin decreased from 58.4 per cent to 56.5 per cent, and its EBITDA declined by 64.7 per cent to $44.7 million.

The Rip Curl brand saw a 2.1 per cent lift in total sales to $487.7 million, while its underlying EBITDA dropped 27 per cent to $27.1 million year-on-year.

Kathmandu saw a slight sales increase of 0.2 per cent to $320.7 million, with the brand’s Australia sales increasing 0.2 per cent year-on-year, and its New Zealand sales decreasing 2.3 per cent due to a challenging consumer environment.

Oboz reported a 3.5 per cent decrease in sales to $67.9 million, an improvement from a 6.3 per cent decrease in sales in the last financial year.

For the new financial year, KMD Brands anticipates a slight increase in its gross margin and an expansion of its EBITDA margin.