KMD - Kathmandu

[couta1]

What if it is nothing to do with the weather, and more to do with the damage they have done to the brand by always having massive 50% off sales. I don't rate their gear at all, and never buy for myself if the purchase is something I will use longterm. Have been buying quality gear online via the US, and shipping via youshop when the retailer wont ship directly. I only buy Kathmandu stuff for the kids as they will grow out of it quickly.

Hard to say Bilbo I mean when was the last time Briscoes didn't have between 20-60% of everything, its just one constant sale and its not hurting them,time will tell I guess.

[Beagle]

Oh dear .....H1 looks like a loss situation

Bloody dry hot weather .....normalised profits allowing for weather would have been quite high.

Yep Couta1 I'm pretty sure W69's comment was meant to be firmly tongue in cheek...along the lines of normalised win percentages for SKC.
In my view apparel companies blaming the weather is wearing very thin as an excuse. Seasonal weather is NEVER perfect and stock mix and promotional campaigns should account for that. Still....if we get a really frigid winter we'll all be out buying Kathmandu jackets and it'll all come right...unless of course we get the usual warmer winter than normal due to ongoing global warming

[MAC]

What if it is nothing to do with the weather, and more to do with the damage they have done to the brand by always having massive 50% off sales. I don't rate their gear at all, and never buy for myself if the purchase is something I will use longterm. Have been buying quality gear online via the US, and shipping via youshop when the retailer wont ship directly. I only buy Kathmandu stuff for the kids as they will grow out of it quickly.

I‘d agree with that, just walking past the Papanui store a few times a week, outside of sale time the patrons do consistently seem to be mostly those just off a plane and stocking up their campervans.

The locals just wait for 80% off sales as at present, if they haven’t developed a natural caution. Such a wide ranged pricing model just seems to make folk a bit uncertain and jaded about what is really value and what is really quality.

Perhaps a new CEO will turn it all around and provide better clarity as to what the target market really is.

Are they a camping store for tourists, or are they are retail vendor of high end quality goods for New Zealanders and Australians.

Can’t be both IMO, but there is room to split the brand and carve off stores near the airports and tourist trails under different branding.

[percy]

Hard to say Bilbo I mean when was the last time Briscoes didn't have between 20-60% of everything, its just one constant sale and its not hurting them,time will tell I guess.

Huge difference.
Briscoes' 20 to 60% off are off a realistic retail price,while Kathmandu's are totally unrealistic.

[Bjauck]

Hard to say Bilbo I mean when was the last time Briscoes didn't have between 20-60% of everything, its just one constant sale and its not hurting them,time will tell I guess.

Even when I was a shareholder, I would never buy anything at full price and would treat Kathmandu sale prices as "normal trading" prices. I would feel a mug if I bought something that was not on sale. Even when sales were on, the shops seemed empty. I found I was buying minor items on sale near Christmas as stocking fillers. I thought the quality and design of items was good but as I was not buying them, I must admit I was not comfortable remaining a shareholder: I suppose more of a gut response as opposed to financial reasoning and analysis.

[J R Ewing]

IMO, the first problem with the KMD pricing (very expensive but with huge discounts) is that as a customer you can't use price to gauge quality and you can't use the discount % to gauge value. So you HAVE to go and check competitor stores for the same or similar item and then maybe go back to KMD, or not.

The second problem is that as a general rule of thumb, anything that doesn't have at least 50% off is going to be too expensive. So in effect the store is closed when they don't have a sale.

The other issue I have, speaking from personal experience, is that the customer service is way short of what you get at Bivouac or Macpac.

[Beagle]

Contrary to other views, if I need any outdoor gear, my first stop is Kathmandu. Yes, I only ever buy at sale prices but this heavy discounting model seems to work at Rebel Sports and Briscoes.

It works because customers see value at the discounted prices Rebel Sports and Briscoes offer.
Rebel sports, (not sure how many stores) and Fishing Camping and Outdoors, (13 stores in the North Island) are part of the Super Retail Group listed on the ASX which owns many other brands including the well known Super Cheap auto brand. These guys are huge with sales of over $2b. If my completely random sample experience of looking at buying a hydration backpack is anything to go by where Kathmandu were around $80 on "so called" sale and the FCO were $27 I'd suggest if KMD have issues with gross margin they may have supply chain / procurement cost issues. Maybe the KMD pack is better but does the average customer know that and furthermore do they care ?
Are we moving to a more throw away society where the average customer is happy with getting a couple / few seasons use out of their gear provided they get it cheap enough in the first instance ?

[macduffy]

Isn't Rebel Sport part of the Briscoes group in NZ, Roger?

[Beagle]

Opps quite right. Super retail group have their own "Rebel" brand in Australia. Just means poor KMD have to compete with both Briscoes through Rebel Sport and Super Retail group through their excellent value Fishing Camping and Outdoors stores. SP getting smashed now the Aussie market is open and voicing its discontent.

[JayRiggs]

Anyone have any thoughts on the new CEO - Mr Xavier Simonet?
https://www.nzx.com/companies/KMD/announcements/260001

Is he good enough to turn things around?