KMD Brands (KMD) presentation summary

Financial performance overview

• FY25 total sales reached $989.0m, up 1% year-on-year, with a gross margin of 56.5% and underlying EBITDA of $17.7m.

• Statutory NPAT loss was $93.6m, with underlying NPAT loss at $28.3m; net debt stood at $52.8m.

• Kathmandu sales were $361.9m, Rip Curl $550.4m, and Oboz $76.6m, with strong online sales contributions.

• Net working capital reduced by $40.6m year-on-year to $157.7m.

• Q1 FY26 group sales grew 7.9% year-on-year, with Kathmandu up 13.9% and Rip Curl up 6.6%.

Strategic direction and transformation

• Focus on a brand-led strategy, cost base reset, and agility to drive profitability and growth.

• Next Level strategy emphasizes brand/product-led offense, connected consumer experiences, and data-driven decisions.

• Strategic initiatives include working capital focus, balance sheet deleverage, and profitability-driven guardrails.

• Portfolio-wide cost reset targets $25m in annualized savings for FY26.

• Investment allocation remains flexible, with stage-gated approach based on growth hurdles.

Operational and brand highlights

• Rip Curl launched new GPS3 Surf and Tide watch, opened first women's store in Bondi, and won ISPO award for 3DP boardshort.

• Kathmandu upgraded online platform, launched flagship store, and won ISPO awards for luggage and shorts.

• Oboz collaborated on a limited-edition shoe, grew online sales, and launched a footwear take-back initiative.

• Sustainability initiatives included bio-based wetsuit rubber, 100% RWS wool sourcing, and expanded recycling programs.