KMD - Kathmandu

[Grimy]

I bought a couple of pairs of shorts to help their sales figures a couple of weeks back. Although they were on clearance I'm sure they made something on the sale.

[kiwikeith]

I bought a couple of pairs of shorts to help their sales figures a couple of weeks back. Although they were on clearance I'm sure they made something on the sale.

Thanks for that. I will factor that into my financial forecasts for KMD.

[Grimy]

I'm not a holder, but as an occasional customer I often wonder about the cost (to them) of their 'freebies'. With birthday vouchers (which they now have put a minimum dollar value on for purchases to be able to redeem the voucher), vouchers for reaching spend limits (and those spends included the purchases made with vouchers on clearance items), etc. it seems(ed) for customers like me I can wait for a voucher to arrive, go to the clearance page and find something I wanted that ended up costing next to nothing - a few months back two pairs of excellent walking/work around the section shorts cost $2 each.....

[Sideshow Bob]

Decent drop yesterday and then a negative trading update today.......

https://www.nzx.com/announcements/423822

KMD Brands Trading Update

With the Black Friday retail trading period completed, KMD Brands Limited (ASX/NZX: KMD, “KMD” or the “Group”) provides the following trading update for the first four months of the 2024 financial year ended 30 November 2023 (“FY24 YTD”):

• Group sales are -12.5% below last year, reflecting ongoing weakness in consumer sentiment.
• Group gross margin has improved, with operating costs well controlled and actively managed.
• Consistent with sales trends in the fourth quarter of FY23, Kathmandu has continued to experience weakness in rainwear and insulation categories in Australia. Kathmandu total sales for FY24 YTD are down -21.6%, cycling +71.7% last year.
• Following record sales years in FY23, Rip Curl and Oboz have continued to deliver good results in direct-to-consumer sales. However, FY24 YTD total sales are down -5.7% for Rip Curl and -18.2% for Oboz as wholesale sales for both brands have declined, with retailers reducing inventory holdings in the short-term.
• Group underlying EBITDA(1) for FY24 YTD is c. $16 million below last year, with Christmas and January retail trading periods to come.
• Group working capital has decreased 10.2% year-on-year.

Group CEO & Managing Director Michael Daly said:

“Black Friday promotions for Rip Curl and Oboz delivered strong sales as these brands continued to deliver good results in direct-to-consumer channels, while navigating short-term weakness in wholesale channels as retailers reduce inventory in uncertain trading conditions. Improvement in Kathmandu’s sales performance remains our priority.”

“We remain focused on optimising gross margin, controlling operating costs, and reducing working capital for all of our brands.”
“We continue to make progress towards our working capital target of 18% of sales for the full year, which is expected to drive strong cash flow generation in the second half year."

This announcement has been authorised for release to NZX / ASX by the Board of Directors of KMD Brands Limited.
- ENDS -

[Sideshow Bob]

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[Rawz]

Cant say they didnt warn us with their outlook which had about 10 points of why the future was looking grim.

Sales were down -6.4% Aug 2023
Sales now down -12.5% Nov 2023

Big ole dog stock

[Rawz]

Dog stock a bit mean. KMD is a good business facing tough times. All retailers are hurting.

KMDs time will come again one day

[winner69]

Do we complete this sentence for them ….

“Group underlying EBITDA1 for FY24 YTD is c. $16 million below last year, with Christmas and January retail trading periods to come” (they forgot to add) so H124 underlying EBITDA will be c. $22 below last year

Last years EBITDA was $45m so this year about half that ….ouch?

[winner69]

Dog stock a bit mean. KMD is a good business facing tough times. All retailers are hurting.

KMDs time will come again one day

Barely break even this half year ……maybe not as a ‘good business’ as you think

[winner69]

Always sad to see Performance Rights lapse because targets not met

But then again it’s really a case of no decent profits no bonus

http://nzx-prod-s7fsd7f98s.s3-websit...425/411697.pdf