KMD Brands posted higher net loss despite an increase in sales in the fiscal first half.
The group’s net loss broadened year over year to NZ$16.1 million from NZ$6.9 million while revenue climbed 0.5 per cent to NZ$470.9 million from NZ$468.6 million.
Rip Curl’s sales improved 1 per cent to NZ$278.5 million from NZ$278.3 million as its direct-to-consumer (DTC) sales rose 4.1 per cent and its wholesale sales fell 7.9 per cent.
Kathmandu’s sales grew 3 per cent to NZ$156.8 million from NZ$152.3 million, with its Australia rising 3.8 per cent and New Zealand sales declining 2 per cent.
Meanwhile, Oboz’s sales sank 6.3 per cent to NZ$35.6 million from NZ$38 million.
“We are seeing short-term gross margin pressure for all brands in a highly competitive global market,” Michael Daly, outgoing CEO of KMD Brands said.
“However, our focus remains on growing gross margin in the medium-term as markets improve.”
For the seven weeks to March 16, 2025, Kathmandu’s DTC sales increased 5.2 per cent from the year-ago period while Rip Curl’s DTC sales jumped 0.7 per cent.
Earlier, KMD Brands announced the appointment of Brent Scrimshaw as the group’s new CEO and Managing Director and Ashley Reade as Rip Curl’s new CEO.
Ben Washington will continue in his role as interim group CFO until a permanent CFO has been named.