KMD Brands Preliminary results for FY24

KMD Brands provided the following preliminary update for the full year ending 31 July 2024.

• Rip Curl and Kathmandu sales have shown continued improvement on first half sales trends during both the third and fourth quarters of FY24, as outlined below

• Kathmandu sales trends, relative to FY23, continued to improve in a challenging consumer environment, with enhanced in-store execution and new products. Australia (-4.5%) performer significantly better than New Zealand (-16.5%) through the key fourth quarter winter trading period.
• Rip Curl direct-to-consumer (“DTC”) sales continued to outperform the wholesale channel. DTC sales for FY24 were -2.8% below last year’s record sales result, compared to the wholesale channel -13.0% below last year as wholesale customers continue to reduce their inventory holdings.
• Oboz online sales continued to deliver strong year-on-year growth in FY24, +31.7% above last year. Wholesale sales for FY24 were -23.1% below last year’s record sales.
• Gross margin decreased -30 basis points (-0.3% of sales) to 58.8% for FY24, driven by increased promotional intensity through the fourth quarter. Operating costs were tightly controlled, benefiting from restructuring implemented last year, and lower variable costs associated with lower sales.
• The Group confirms that underlying EBITDA2 is expected to be in the range of $49 million to $51 million for FY24.
• Group inventory at 31 July 2024 was approximately $25 million below the same time last year, resulting in Net Working Capital being approximately $21 million lower year-on- year.
• Net debt at 31 July 2024 was $60 million, with significant funding headroom of approximately $230 million.