Strong BFCM season underpins significant KMD Brands sales boost
Sales of outdoor wear brand Kathmandu surged 12.9 per cent in the five months to December 25, prompting parent KMD Brands to increase its earnings forecast for the full year.
The company says it now expects its first-half earnings before interest, taxes, depreciation, and amortisation to be in the range of $6.3 million to $9.5 million, an improvement from $3.4 million the year prior.
KMD Brands owns Kathmandu, Rip Curl, and Oboz. Group sales rose by 7.9 per cent in the five-month period.
“We are pleased with the group’s early progress in the execution of its next level transformation strategy, in particular trading over the critical Black Friday and Christmas periods,” Brent Scrimshaw, CEO and MD of KMD Brands, said.
“Whilst we are still at the early stages of our transformation, we are encouraged by the improved performance of Kathmandu, with an adjusted flow of fresh innovation planned in the second half, which we believe will strengthen our ability to expand gross margin over time.”
The company now plans to continue to actively manage its inventory investment and focus on optimising the balance between sales and gross margin.
Half and full-year results are scheduled for release on March 25.
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