KMD - Kathmandu

[Beagle]

Interesting article behind the pay wall on NBR this morning. Unseasonably warmer weather affects clothing sales. Mentions Kathmandu as one with potentially the most to lose with winter sales but also HLG, PPL Briscoes and WHS.

Must admit it has been very very mild, in fact out and about yesterday in Auckland's domain it felt like late spring. Temperatures as much as two degrees C higher than average for the last couple of months and very warm sea temperatures around N.Z. were mentioned supporting the proposition that all of May and perhaps even June will continue to be unseasonably mild.

Implications for HLG that have already admitted mild weather is affecting sales and PPL on just 9 cps and others...interesting times for retailers.

[Schrodinger]

Yes I have noticed that as well.

Thinking back to Rod Duke he is a pretty savvy retailer and I think him directing the show would be good for Kathmandu. Also buying/logistics synergies with his other brands. I also think he could leverage the community and increase their engagement with customers who are wanting advice on buying decisions.

He might return with another offer....

[huxley]

Bought some items recently online. Very impressed with the experience and the quality was pretty good. They could improve their overall presentation on the mail items but it was good overall.

The real gem is their online shop but I still think they need to "Amazon" the experience by building the feedback community for item reviews.

Here's a bit of info on their website for anyone who's interested..
One positive might come from leveraging the brand and selling into Europe etc via the Internet. Watch this space...

[huxley]

http://www.fronde.com.au/assets/Case...book-FINAL.pdf

[Schrodinger]

http://www.fronde.com.au/assets/Case...book-FINAL.pdf

Nice case study. They have the basic structure and GUI looking good. They just need now to get people to give product feedback that will make the site even more valuable.

[drcjp]

Close to 4% of company traded in last fortnight - something going on.

I'm not sure that one can read too much into the weather thing and sales. Winter will come and people will plan accordingly. I note that Myer reported subdued winter sales but they still hold to their bottom line forecasting: https://nz.finance.yahoo.com/news/my...W4tTlo-;_ylv=3

The thing is, people buy other clothes than just winter gear and if the discounts are good enough (which KMD have been doing a lot of lately) and the stock is pitched right then one can carry on. It'll be interesting though.

[Hectorplains]

I'm not sure that one can read too much into the weather thing and sales.

Beg to differ. Slow sales, high inventories. Means you're forced in to 'discounting' early and reduced margins.

[huxley]

I'm not sure that one can read too much into the weather thing and sales. [/QUOTE]


Pretty much every communication from the company stresses the impact on the second half sales and in particular the winter promotions - just take a look at the announcements over the last few years. The brand is well positioned for the outdoors/winter market in Aust/NZ but the size of the market is largely dependent the weather.. I see customers putting off purchases for the foreseeable.. I still hold however since I think the long term growth of the catagory is positive e.g. people wanting to generally look after health & be more active etc etc.

[Ekrub]

http://www.thebull.com.au/premium/a/...dervalued.html

[winner69]

Those Independent Advisors were pretty clever last September saying KMD shares were worth $2.10 to $2.40

Maybe one day they will reach these lofty heights ....one day