o Record performance in Kathmandu's key winter promotional period.
o Rip Curl continues to trade strongly across retail and wholesale channels.
o Oboz suppliers have resumed full production following COVID-related factory
closures, and inventory levels are recovering. Wholesale demand for Oboz
products remains significantly above pre-COVID levels.
o Retail trade in Australasia was impacted by the Omicron outbreak,
particularly during the third quarter.
o Underlying FY22 EBITDA (1) is expected to be in the range of $88 million to
$94 million, and underlying EBIT (2) $53 million to $59 million.
KMD Brands Limited (ASX/NZX: KMD, "KMD" or the "Company") provides the
following update on trading performance for the year ending 31 July 2022
("FY22").
Total sales are expected to be in the range of $955 million to $965 million.
Underlying EBITDA (1) is expected to be in the range of $88 million to $94
million, with underlying EBIT (2) in the range of $53 million to $59 million.
As previously communicated, the year-on-year impact of COVID on first half
EBITDA was approximately $35 million. Trading conditions have improved in the
second half, however COVID continued to impact footfall, particularly in the
third quarter, and caused sporadic store closures due to staff availability.
Same store sales year-to-date ("YTD") remain positive for both Rip Curl and
Kathmandu, despite the significant COVID impacts on retail. YTD direct to
consumer ("DTC") same store sales (including online) for the 49 full weeks to
10 July 2022:
Same Store Sales YTD
Rip Curl +2.1%
Kathmandu +7.3%
Group CEO and Managing Director Michael Daly said:
"Rip Curl's wholesale and direct-to-consumer retail channels continue to
perform well. Wholesale order books are above prior year levels as we look
forward to next year."
"Pleasingly, Kathmandu has experienced a record winter promotional period in
Australia. Second half gross margins are well above last year due to a
combination of currency benefit and updated promotional execution. Trading in
New Zealand was weaker than in Australia reflecting lower growth in consumer
footfall and revenues, offset by improved gross margins reflecting the
deliberate strategy to carefully moderate the historic "high-low" pricing
model. While Q3 was impacted by the ongoing COVID outbreak in both counties,
Q4 profitability is expected to be above pre-COVID levels absent of any new
government restrictions."
"Oboz is recovering from the three-month COVID closure of Vietnam factories
in the first half, compounded by shipping congestion and international
freight delays. Oboz has received approximately two hundred thousand pairs of
footwear in the past two months, as suppliers resumed full production.
Additional supply has been secured for future seasons to meet order book
demand."
"Inventory levels are forecast to be above last year, reflecting decisions
taken in the light of ongoing supply chain disruption, to accelerate orders
to meet forward wholesale orders and expected retail demand. Inventory
quality remains high, with depth in carry forward styles, and lower clearance
levels year on year."
"The Group continues to target our long-term objective of 0.5x net debt to
underlying EBITDA."
"We continue to deliver on our objectives to grow KMD into the leading family
of global outdoor brands by elevating digital infrastructure and the consumer
experience, leveraging operational excellence, and being a leader in ESG. KMD
is well positioned for growth as travel rebounds globally, and COVID impacts
on consumer behaviour and international supply chains ease."
Originally Posted by nztx
Wonder if MHJ want to lend KMD their expert on "how to breathe life into a Dog hobbling along on three legs" ?
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