My sense is KMD products are largely a fairly expensive discretionary spend and as such they will do it tougher than most other retailers in this deep recession.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
My sense is KMD products are largely a fairly expensive discretionary spend and as such they will do it tougher than most other retailers in this deep recession.
My sense is that they are well and truly in trouble. A lot of kiwi's new pay full price at KMD because you wait for the 70% off sale. But many tourists passing through probably ended up paying 100% retail. They are gone. Not sure if KMD will even be profitable for a year or two.
My sense is that they are well and truly in trouble. A lot of kiwi's new pay full price at KMD because you wait for the 70% off sale. But many tourists passing through probably ended up paying 100% retail.
You make a good point. I assume there is still good margin on their 50% or whatever sales, but nothing like the tourist ticket clipping at retail. I wonder what the sales percentage split would have been (in the good times).
I wonder what the sales percentage split would have been (in the good times).
Now that is the $million question. Of that I am not sure and so my theory may not fully hold. Not even sure if there is margin on the 50% stuff after you take in the fixed costs though.....
I must disclose that I am short this stock at the moment....
The turnover has doubled in the last couple of years due to their boots and Rip Curl acquisitions. This has diversified their customers and locations which may give the Katmandu brand much greater exposure through the Rip Curl retailers. It will be interesting to see how badly their segments of retail fare.
My sense is that they are well and truly in trouble. A lot of kiwi's new pay full price at KMD because you wait for the 70% off sale. But many tourists passing through probably ended up paying 100% retail. They are gone. Not sure if KMD will even be profitable for a year or two.
Good to be down in Queenstown in September. Brilliant weather, great skiing, less people and lots of sales. Couldn't help comparing KMD sale prices with the Mountain Warehouse. Mountain Warehouse has some great gear at fantastic sale prices and makes KMD sale prices look like full retail ! Could be some extra good sales down there this year !
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
prehaps another capital rights issue this time next year as they trade in a loss? PPE fashion range as a new hardened economy start to be created for protecting the economy from farther risks?
Bear in mind that even after the KMD Cap Raise, I read somewhere that they still $100 m approx of interest bearing debt onboard going forward which will require servicing..
Around Cap Raise time I calculated that BGR also have $100 million approx unrealised write down on their now badly diluted stake as well over the fair value of the holding last time BGR reported .. arising out of their KMD foray which may land in BGR's next reports
Possibly changed a bit since then, but still probably a fairly hefty impact to come on BGR shareholder funds..
i alway sell retail whe they spike, sold out twice on the highs... bought back in as a destressed asset. if they survive will sell again ..be interesting to see if rip curl does soem trade.. after all surfing is on at level 3 and i can only ride my bike . no single sculling but swimming is in. a lady had her kids out swim training a few weeks ago.. pools cold its going to be cold in the water soon.. with Mr O promsing to give the government money if required its a restart ...
Originally Posted by winner69
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