KMD - Kathmandu

[airedale]

Better opportunities elsewhere.

[macduffy]

There's some pretty forthright views being put forward but we havn't seen a prospectus yet.

Or have I missed something?

[BRICKS]

There's some pretty forthright views being put forward but we haven't seen a prospectus yet.

Or have I missed something?

BET now you wont BUY ... THIS type of company is being flogged at the top price for the current owners not for Johnie come latelys and on top we just need another clothing SHOP

[macduffy]

BET now you wont BUY ... THIS type of company is being flogged at the top price for the current owners not for Johnie come latelys and on top we just need another clothing SHOP

We'll see - once the prospectus comes out.

Taking too hard a line resulted in my missing out on the IPO's of Woolworths, Freightways and CBA. The prospectus for the latter was available in bins outside CBA branches in Sydney at the time, just like real estate brochures!
So I've learnt not to jump to conclusions about such things.

[Dr_Who]

We'll see - once the prospectus comes out.

Hey Macduffy, I value your views on this IPO. Pls comment when you have had a look. I too will try to crunch some numbers and do some quantitative and qualitative analysis. I think the Myers listing will be important to watch to see how this one will float.

My experience from looking at the shops, I see Kath as just another over priced store and have no competitive advantage.

[cycat64]

I could understand why posters would be so averse to this float if it was based on fact. But the facts are not out there as yet. No float has been announced. It is possible that Kathmandu might be a lemon, but the facts so far tell us that it has been a hugely successful business and one of the few New Zealand retailers to crack the Australian market. Dr Who tells us that Kathmandu has over-priced stock and has no competitive advantage. Can I ask him two questions ? Firstly, is there something wrong with over-priced goods even though people buy them ? Secondly, for a lack of competitive advantage there has to be competition, so pray tell me what the competition is ?

[tobo]

The only thing we don't know is the price.
We know what the business is.

Kathmandu was based on an image of all the young trendies doing their OE, and high-tech advanced and good-looking outdoor wear for the rugged climates that wasn't cutesy ski-bunny wear.

More recently, for a lot of people, it's those same quality clothes for use by past OE-ers who now live in the city, and now available at 50% discount when you catch the never-ending sales. (Of course, once in the shop, you sometimes find the thing you want is not on sale. You either buy it...or you go down the road to para rubber or hallensteins or posti-plus)

The question is around the potential for the brand to transition from rugged/quality/trendy to discount clothing.
There must be other clothing brands that have done this

[zac]

The Kathmandu brand is well established and was, at the outset, a brilliant concept. The initiators, Jan Cameron and others, came from a background of retailing outdoor sports equipment, in particular, clothing. Kathmandu clothes are designed for what may be called, the urban tramper; they garments are not rugged enough or durable enough for the real thing but appeal to people who identify with travel or the outdoors. I wear Kathmandu gear in town but not in the bush. There is competition for the same market as Kathmandu; Bivouac, Mountain designs, Snogum, Columbia, Swandri etc. All are trying to trade off the outdoor image to sell casual wear. Bulk Asian made clothing is cheaper at Kathmandu, but with the exception of house brands (of average quality), any good quality branded product is no cheaper than in other stores. Kathmandu has certainly had a marketing edge over the competition but I sense that this is disappearing, and since the new private equity buyout the quality of product being sold has gone down; less good quality specialized gear in favour of cheap house brand goods.
A sort of Warehouse for the outdoor wanabe.

[Placebo]

Here we go. The rumours are all true: http://www.stuff.co.nz/business/2979...or-457-million

[zac]

Further to my comments above I should mention that from the beginning the design of Kathmandu garments has been first rate; and their publicity material is superb. But on the racks the garment range has been reduced and colourways are less trendy. I will not be buying shares.