Originally Posted by
EBITDA
In the interim statements published last month, KMD is holding a TON of inventory at the moment. ($250m)
This is partially due to the recent acquisition of Ripcurl but it is still a very high level of inventory and in the current market it does make sense that new imports are being cut.
I think KMD was stocked up expecting a strong 2020 and are fortunate that their gear isn't as fashion focused as other clothing retailers, I would expect minimal write off on the value of existing inventory.
Not surprised about the cancellations of orders having viewed their balance sheet, don't think its an overly negative sentiment either. Seems in line with the current economy and honestly am fairly bullish here over a 24 month span.
Disc: Bought at 0.64, sold at 0.84 one week later.
Rebought at 0.73 last week and feeling quite bullish on a mid-long term hold.