Despite challenges, KMD Brands has announced it is on track for over a billion dollars in sales for FY23, a record for the company.
KMD Brands today released a trading update and guidance for the full year ending 31 July. With three weeks to go, the company has confidence it will reach a record high for KMD Brands as it breaches $1 billion, at an expected $1.1 billion in sales.
KMD Brands is a global outdoor, lifestyle and sports company, the parent company of Kathmandu, Rip Curl and Oboz.
Last year the company reached a record $980 million in sales after recovering from the Covid slump.
Gross margin is expected to be in line with last year’s 58.9 percent and EBITDA is expected to be in the range of $105 million to $110 million, up from last year’s $92 million.
Despite growth in the first three quarters of the year, KMD Brands says the fourth quarter has been more challenging, with increased cost-of-living pressures softening consumer sentiment.
While the company hasn’t released a full results breakdown, it has identified that Kathmandu has so far experienced a slower start to its winter trading period, impacted by a warmer start to winter in Australia, and softening consumer sentiment overall.
“With three weeks of trade still to come, we remain focused on delivering our key Kathmandu winter and Rip Curl Northern Hemisphere summer results while continuing to moderate our cost base for the year ahead,” Group CEO & Managing Director Michael Daly said. “We’re looking forward to delivering over $1 billion in sales at year-end – a first for KMD Brands.”
Last week, KMD Brands CFO Chris Kinraid announced plans to leave the company at the end of the calendar year. A replacement for the role is still being sought.
*Please note numbers are in NZD
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