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.......:mellow:

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

................

[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-website-ap-southeast-2.amazonaws.com/attachments/KMD/425425/411697.pdf

[Jenny Ruth]

Hi all. My latest column on my Substack, Just the Business this morning about KMD's Rip Curl hitting an own goal. The headline is:
KMD's Rip Curl joins the trans lobby in denigrating women

[Rawz]

Hi all. My latest column on my Substack, Just the Business this morning about KMD's Rip Curl hitting an own goal. The headline is:
KMD's Rip Curl joins the trans lobby in denigrating women

Excellent article Jenny. Need more woman standing up for woman.

KMD.. go woke go broke

[iceman]

Excellent article Jenny. Need more woman standing up for woman.

KMD.. go woke go broke

Agree. A great article and should be a warning to others considering going down that stupid road

[hesiod]

Hi all. My latest column on my Substack, Just the Business this morning about KMD's Rip Curl hitting an own goal. The headline is:
KMD's Rip Curl joins the trans lobby in denigrating women

I was pondering this as I listened to Don Braid and wondered if there was a timing consideration. Sometimes being at the leading edge of the discussion brings more risk, but also greater societal benefit. I'm not sure when MFT started their sloganeering bu t it's hardly core business and comes with some degree of "worthiness" . https://www.rnz.co.nz/national/programmes/afternoons/audio/2018925081/origins-of-the-mainfreight-trucking-words-of-wisdom

[winner69]

KMD market cap down 40 million since that story broke

[Sideshow Bob]

KMD market cap down 40 million since that story broke

I wonder what Allan thinks.....or if are busy doubling down.......

[Rawz]

Old mate Allan bets on FBU and KMD not going so well.

But i guess that's part and parcel of being a contrarian investor

[Leemsip]

just looked up old mate Allans returns. Pretty good actually.

sadly doesnt paste well, but well into the low teens for most of the funds over short and long time periods

[Sideshow Bob]

I wonder what Allan thinks.....or if are busy doubling down.......

Allan has trimmed their holding http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/425982/412322.pdf

Maybe doubling down on FBU......

[Rawz]

Allan has trimmed their holding http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/425982/412322.pdf

Maybe doubling down on FBU......

other way round. Allan bought another 7m shares odd :eek2:

[winner69]

other way round. Allan bought another 7m shares odd :eek2:

Alan Gray’s notice of more shares in FBU prob out tomorrow …takes a few more dollars to get 1%

[Sideshow Bob]

other way round. Allan bought another 7m shares odd :eek2:

Monday morning.....need coffee......:blink:

[Filthy]

a trading update came this time last year & usually in the 1st or 2nd week of Feb, so might be due some more news soon.

approaching Covid lows. wonder if 'ld mate Rod might be interested again. Could get at a huge discount to the NZ$1.80 offered in 2015.

since then.... the BGP SP has about doubled and KMD has about halved. so they could do with a bit of Rod magic.

[Muse]

https://www.nzx.com/announcements/426457

Diabolical update

So pre IFRS16 EBITDA of $~15m. that's a 67% fall from the $45m (same basis) they achieved last year. After PP&E depreciation etc not going to be much NPAT produced at the bottom line for the first half.

[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

Sales down -6.4% Aug 2023
Sales down -12.5% Nov 2023
Sales down -14.5% Jan 2034

woof

[winner69]

Breakeven first half at best I reckon

Muse said diabolical …agree

Rip Curl didn’t have a good last 2 months

Time for Captain Kirk to go?

[Rawz]

Old mate Allan Grey not very good on his timing with buying up big on KMD and FBU.

No doubt still come out with a tidy profit once the true value of these companies are realised in a few years time.

[Sideshow Bob]

Old mate Allan Grey not very good on his timing with buying up big on KMD and FBU.

No doubt still come out with a tidy profit once the true value of these companies are realised in a few years time.

Down 15c/24% on opening to 47c. Ouch.....!! Lower than the Covid dip!!

What's Rod's plans??

[winner69]

Old mate Allan Grey not very good on his timing with buying up big on KMD and FBU.

No doubt still come out with a tidy profit once the true value of these companies are realised in a few years time.


You must be getting your buy orders in

Book value $1.18 ……..for branded retailer ‘true value’ in excess of 2 bucks eh

[winner69]

Down 15c/24% on opening to 47c. Ouch.....!! Lower than the Covid dip!!

What's Rod's plans??

Rod to David ….this for real mate!!

Think Rod regretting getting involved ……doubt whether he’d want it now seeing its supposedly more than retailer ……just have to curse his bad luck and when he comes to cash out its worth more than today

[Rawz]

You must be getting your buy orders in

Book value $1.18 ……..for branded retailer ‘true value’ in excess of 2 bucks eh

During these troubled times i am basically only buying 'good news' companies. I.e. companies that are issuing guidance ahead of last year.

My top 3 buys are
FND.asx
TWR
2CC

[Rawz]

3m+ shares traded on the asx.

Old mate getting stuck in. Thank goodness there is a buyer to absorb the sell side

[nztx]

Rod to David ….this for real mate!!

Think Rod regretting getting involved ……doubt whether he’d want it now seeing its supposedly more than retailer ……just have to curse his bad luck and when he comes to cash out its worth more than today


Rod to David: Another Cash issue needed ? Count us out like last time round ? ;)

Why don't you suckers pay more attention to the way I do things over here in Kiwiland ? ;)

[Goob]

Some estimates made to figures below figures like FX, but:

FY17:
- Kathmandu Brand sales: ~$417m AUD
- MacPac sales: ~$75m AUD

Extrapolate 0% & -21.5% 1H24 growth for MacPac & Kathmandu respectively to FY24:
- Kathmandu Brand sales: ~$311m AUD
- MacPac sales: ~$216m AUD

Kathmandu is in reverse & MacPac taking tonnes of share.

[malreid]

When you walk into a store and the few other customers in the store are always concentrated around the sales and clearance racks, and that repeats in other stores that tells you something about the market perception of the value on offer. When customers are not only in but spread throughout the neighboring competitors stores, that tells you about the direction the business is headed.

[winner69]

As per Goob note above Kathmandu being killed by MacPac. Mountain Warehouse taking share from Kathmandu as well

No wonder KMD group performing badly …and Rip Curl and shoes not pulling them through

Kathmandu woes summed up in BusinessDesk article

This bit pretty damning

Coriolis director Morris blames execution for the decline, saying from reading the earnings reports that the company has identified the issues.

“There's nothing that's not fixable with Kathmandu,” he said.

“It's pretty straightforward to look and see what needs to be done, but in practice, it doesn't seem to be happening.”

https://businessdesk.co.nz/article/retail/kathmandont-analysts-pan-nz-outdoor-retailer

[Filthy]

from Briscoes today "This year’s result includes $2.1 million (after tax) of dividends from the Group’s investment in KMD Brands Limited, matching the amount received for the same period last year." - so would expect divie to at least be held next Tuesday.

[nztx]

from Briscoes today "This year’s result includes $2.1 million (after tax) of dividends from the Group’s investment in KMD Brands Limited, matching the amount received for the same period last year." - so would expect divie to at least be held next Tuesday.


No those are past dividends Roddy will be referring to not necessarily ones if any ahead :)

Gez that SP trend looks sad ..

Gotta give it to Roddy man .. that staypower .. maybe he sees a small distant light no-one else has noticed
or doesn't like prospect of realised red seeping through :)

Maybe the turkeys over the way need another Roddy lesson "Do as I do" ? ;)

[winner69]

So first half is a $9.7m LOSS

The Kathmandu brand/stores getting worse as time goes by ….almost beyond redemption I’d say


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/428176/415136.pdf

[Rawz]

Tough tough trading. And reading the outlook its more pain to come.

Writing was on the wall a long time ago so no surprises i guess.

Lucky Allan has been buying, giving punters a chance to exit

[Greekwatchdog]

Thats a pretty somber result. I have had this on my watch list for last 12 months. Where does everyone think the bottom is. Is this a takeover target for Briscoes once and for all or any other retailer? I mean its there for the taking..

[Leemsip]

I think the consumer weakness has a few more quarters to run... no hurry on this.

Big Allan's dip buying hasnt been working great in MPG and KMD.. Decent returns speak for themselves though, so presumably this does work out in the long run

[Rawz]

Thats a pretty somber result. I have had this on my watch list for last 12 months. Where does everyone think the bottom is. Is this a takeover target for Briscoes once and for all or any other retailer? I mean its there for the taking..

IMO all retail is stuffed until rates come down. Cant see KMD having a strong winter trading.

SP is in a major downtrend. Why bother trying to catch a falling knife

[Greekwatchdog]

IMO all retail is stuffed until rates come down. Cant see KMD having a strong winter trading.

SP is in a major downtrend. Why bother trying to catch a falling knife

Agree with you in that. KMD needs a damn cold winter in NZ and Aust

[Toddy]

Hold on, no mention of the record summer weather. Happy campers and outdoors punters buying up large.

6 months to January means August to January trading. I would have thought the majority of 'Winter' trading happens before August.

[winner69]

Charts from their preso re Kathmandu performance

Suppose they couldn’t say the brand is ‘munted’ ….killed by its competitors in Mountain Warehouse and Macpac

Sadly they don’t seem to know what to do but hope ….hope like hell it doesn’t get worse and then hope that things will get better

Beyond redemption

[Entrep]

Agree with you in that. KMD needs a damn cold winter in NZ and Aust

Feeling pretty chilly this morning in Auckland...

[winner69]

Shame Kathmandu has completely lost its way because Rip Curl going well …but Group profit (and share price) is always going to be ‘disappointing’ because of Kathmandu no matter how great Rip Curl get

Maybe time to come to do what WHS did to T7 and cast Kathmandu adrift ……somebody must think they are worth something.
buyers

[Greekwatchdog]

Problem I have with KMD product is that it is so expensive, given Macpac price. This above anything should be where the Management should be looking at especially given the tough economic conditions we are in. They simply haven't read their own market well enough

[winner69]

KMD not even cash flow +ve

Operating Cash Flow (including leases) an outflow of $3m and then spent $15m on Capex

Cash Flow is seasonal but you’d expect better

O wonder no divie …would have had to borrow more lol

[nztx]

Capitain Kirk, we have a strong meltdown under way - time to call in more experienced operators
to see if they can offer a fix that the resident talent on a high screw can't seem to diagnose ? ;)

[Filthy]

no wonder no divie …would have had to borrow more lol

well... some companies would've - at least that shows some prudence.

looks like they clawing back some of the lost ground in Feb/part March.

so maybe outlook not all bad.

just need some wind, rain (and the phoenix)

[Sideshow Bob]

just need some wind, rain (and the phoenix)

Well just had a look at what El Nino means for NZ in winter.

NIWA says....."In winter, the winds tend to blow more from the south, causing colder temperatures across the country"

The old puffer jacket might be in business.....

[Muse]

Well just had a look at what El Nino means for NZ in winter.

NIWA says....."In winter, the winds tend to blow more from the south, causing colder temperatures across the country"

The old puffer jacket might be in business.....

aye

but probably won't have much stock after last year(s) model have been discounted away and new season orders quite slim.
this CY probably the bottom of the cycle. the company has issues, and the cycle and its issues compound each other, but would have thought the business will fare better next yr

[Goob]

Directors buying. Love to see it.

There is some downside support imo if you assume Rip Curl is worth say $350m (they did pay a near top-of-the-cycle $370m in 2019). Would leave around $150-180m on debt-free basis for Kathmandu and Oboz but that doesn't include lease liabilities. Would still need to see Kathmandu recover for that but it's somewhat interesting

[biker]

Nice lift today but off a VERY low base. Quite good volume with VWAP 58.5 up 10%.

Always nice to see directors buying.

[Rawz]

Got to give credit to the board buying up when their company is down in the dumps. Good on them, a lot of other boards are no where to be seen when the SP falls.

David Kirk adding another 100k shares.

https://announcements.nzx.com/detail/428612

[nztx]

Got to give credit to the board buying up when their company is down in the dumps. Good on them, a lot of other boards are no where to be seen when the SP falls.

David Kirk adding another 100k shares.

https://announcements.nzx.com/detail/428612



http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/419297/404314.pdf


It was +207 K Shares added for the six months preceding that to 3 Oct 2023

[winner69]

Punters should be indebted to Alan Gray forvsupporting the share price of the likes of KMD and Fletchers

Without them wonder where share price would be

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/428928/416026.pdf

[Rawz]

Punters should be indebted to Alan Gray forvsupporting the share price of the likes of KMD and Fletchers

Without them wonder where share price would be

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/428928/416026.pdf
Incredible conviction. Bad update follows bad update and they continue to buy all the way down. Against all the rules of investing lol

[winner69]

Incredible conviction. Bad update follows bad update and they continue to buy all the way down. Against all the rules of investing lol


But not against the rules of contrarian investing

Maybe Valuenz works/advises them … more incredible value in future as share price goes lower and lower

[Rawz]

But not against the rules of contrarian investing

Maybe Valuenz works/advises them … more incredible value in future as share price goes lower and lower

I suppose being a manager of a large fund you need to buy all the way down to get a decent position.

Like mum and dad investors can just sit until the company reports some good news and then take a decent position in one or two days trading.

One day it will be good to buy the likes of KMD and MHJ. But definitely not today imo

[Rawz]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/429059/416177.pdf

another director buying. 50k odd shares. first ever purchase.

must be cheap all these insiders buying

[winner69]

Deleted ..somehow posted twice ..not me honest

[winner69]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/KMD/429059/416177.pdf

another director buying. 50k odd shares. first ever purchase.

must be cheap all these insiders buying

That Srimshaw guy got grilled at ASM last November when standing for re-election why after 6 years he had not got any shares …..and just watched as shareholders had seen such a decline in the share price during his tenure blah blah

Think he said it was for ‘personal reasons’ and he’d look at getting some shares ….at least done the noble thing

[Rawz]

That Srimshaw guy got grilled at ASM last November when standing for re-election why after 6 years he had not got any shares …..and just watched as shareholders had seen such a decline in the share price during his tenure blah blah

Think he said it was for ‘personal reasons’ and he’d look at getting some shares ….at least done the noble thing

thats shocking after 6 years. But hey, at least now it must be super duper cheap if after all this time he finally sees value lol

[winner69]

8% of votes for re-election were NO

See he’s CEO of ASX listed EGG

[Rawz]

$1.8m off market transfer gone through at 44 cents.

44 cents, can you believe it!

[Toddy]

$1.8m off market transfer gone through at 44 cents.

44 cents, can you believe it!

Is that a good or bad thing?

[bulltrap]

Is that a good or bad thing?

Could mark a trend reversal, time will tell.

When that happens, it has the whiff of a poop-and-scoop operation. But there's no way to prove it.

[moimoi]

$1.8m off market transfer gone through at 44 cents.

44 cents, can you believe it!

Worth a look....?

[Filthy]

trading update came on the 18th of this month last year.... so should be due one soon.

wonder if the cold weather in NZ has helped sell a few more jackets.

reckon there could be more upside than downside from here (for those willing to take a punt).

[winner69]

They using Liam Lawson to promote the new gear

[Filthy]

They using Liam Lawson to promote the new gear

https://stoppress.co.nz/news/kathmandu-launches-new-campaign-with-f1-driver-liam-lawson/

yeah, so it seems. pretty cool eh. F1 cool again since drive to survive came out on netflix. hopefully he can pick up a spare F1 seat soon, maybe next year.

new jacket style actually looks a little like the barbour jackets (which are popular in the UK).

shows they are pivoting. might be one of the new innovative products referred too in the H1 outlook statement:

OutlookFirst half sales trends have improved for all three brands as they begin the second half year.Group sales for February 2024 were -3.5% below last year, noting that February is not asignificant trading month.Commenting on the outlook for the Group, Mr Daly said:“In the second half the Group will be cycling less challenging sales performance last year,particularly Kathmandu in the fourth quarter.”“Improving Kathmandu sales performance is our immediate priority as we approach the keywinter trading period. We expect to see progress in the second half and into FY25 as welaunch new innovative products, quick to market programmes, elevated visualmerchandising, increased personalisation through the recently released “Out ThereRewards” and an expanded third-party brand strategy.”“We expect the wholesale customer inventory reduction cycle to end this financial year,giving us a more positive FY25 outlook in the wholesale channel for both Rip Curl and Oboz.”“We believe that with our portfolio of iconic global outdoor brands and leadership insustainability, we remain a unique investment proposition and well-placed for the future.”

[malreid]

I wasn't aware that they are now offering Rip Curl. Oboz yes because I just bought a new pair of boots. However I made that purchase from the competition across the way which not only offered a wider range and better pricing, but were far more helpful (no assistance at all from the KMD staff...). Not sure if expanding their range to include other brands is a good thing or not. Takes them away from being proudly brand specific which is what laid the foundation for the business to more directly competing with MacPac and Bivouac which makes price point for their own product even more important when it sits directly alongside an alternative on the shelf.

In my neck of the woods it's also that time when new migrants from warmer climes begin to build their winter wardrobe. Local MacPac store is busy, larger KMD in the same mall and even larger one 10 mins away not so busy and and foot traffic seems to head straight to clearance items. It would be interesting to know what percentage of stock gets shifted at full ticket price and clearance price across the market.

[Filthy]

any idea why this has come through? https://www.nzx.com/announcements/431603

[kiwical]

From what I can see, of the rule itself, every company has to do this every year.

1.15.3 An entity admitted as an ASX Foreign Exempt Listing must continue to comply with
the listing rules (or their equivalent) of its + overseas home exchange. By no later than
the lodgement of its full year accounts with ASX in each year, the entity must give
ASX, for release to the market, a statement that it continues to comply with those
rules.
Introduced 01/07/96 Origin: Listing Rule 1B(3) Amended 30/09/01, 08/09/15

[Filthy]

From what I can see, of the rule itself, every company has to do this every year.

thanks kiwi!

[Filthy]

https://www.nzx.com/announcements/431807 - Directors still buying. & the cold weather keeps coming....

[Rawz]

https://www.nzx.com/announcements/431807 - Directors still buying. & the cold weather keeps coming....

Good on that director. Holds 1.1m shares. Way to back your horse.

[Sideshow Bob]

Good on that director. Holds 1.1m shares. Way to back your horse.

He was buying more SKT recently as well....

[bung5]

Allan Gray upto 16.1% holding . Feels like the bottom could be in or round abouts

[winner69]

Jeez KMS shares hit 30 something today

Never been that low this century …if ever

Suppose Alan Gray lurking and mopping up the dregs

[Leemsip]

Alan Gray with a big stake taking an absolute shellacking in one of the asx stonks I follow (but no longer hold) AVG. Going hard into consumer discretionary….

[nztx]

Alan Gray with a big stake taking an absolute shellacking in one of the asx stonks I follow (but no longer hold) AVG. Going hard into consumer discretionary….


I did have some of dem too a very many moons ago before running away :)

[nztx]

Another discounted Bail out Cap Raise soon - shepherded in by Capitain Kirk ? .. or not

Too much more of these sort of rescue missions to pull KMD out of a ditch & folk might start
getting used to the scheme of things and decide to trek off to calmer space elsewhere to
count what remaining coin they have left over :)

[Filthy]

https://www.nzx.com/announcements/433189

TOTAL SALES CHANGE YOY1H FY24 Aug 23 to Jan 24Rip Curl -9.2%Kathmandu -21.5%Oboz -20.0%Group -14.5%2H FY24 to date Feb 24 to May 24Rip Curl -5.9%Kathmandu -8.4%Oboz -21.8%Group -8.4%• Rip Curl and Kathmandu sales have shown improvement on first half sales trends during the first four months of the second half as outlined above. For the 10 months to May 2024, Group gross margin remains resilient, with operating costs tightly controlled.• Kathmandu has subsequently experienced a slower than expected start to the key winter promotional period. The first three weeks of the Winter Sale are -11.5% below last year, and below the improving 2H trend. Through the first three weeks of Winter Sale, Australian sales are in line with the 2H trend, however New Zealand trade remains challenging. Australian sales have improved each week as we progress further into the winter season.• Rip Curl has started its peak summer trade in the Northern Hemisphere. Direct-to-consumer sales for the USA and Europe for the start of summer are showing positive single digit growth above last year, noting that the peak weeks are still to come.• Rip Curl and Oboz wholesale customers continue to reduce their inventory holdings in response to the challenging consumer environment.• Oboz online sales continue to deliver strong year-on-year growth +28.9% for the 10 months to May 2024, benefiting from strategic promotional activity and new product innovation.• Whilst second half sales have improved on the first half trends, the Group has not seen the continued improvement expected at the start of Kathmandu’s key winter trading period. The Group now expects underlying EBITDA(1) to be approximately $50 million for the full year, based on the most recent sales trends across all brands. The Group has six weeks of peak Kathmandu winter trade and Rip Curl Northern Hemisphere summer trade still to come.• The Group has taken pre-emptive action with the support of its banking Group to lower the FCCR covenant ratio for the next three measurement points. Funding headroom at 31 July 2024 is expected to be approximately $200 million.Group CEO & Managing Director Michael Daly said:“With six weeks of peak trade still to come, we remain focused on optimising our Kathmandu winter and Rip Curl Northern Hemisphere summer results in a challenging consumer environment. We are seeing a prolonged impact of cost-of-living pressures on consumer sentiment globally but particularly in New Zealand, and we continue to respond tactically to competitive market dynamics.”“Alongside immediate trading priorities, our focus remains on tightly controlling operating costs, moderating working capital, and maximising cash flows.”This announcement has been authorised for release to NZX / ASX by the Board of Directors of KMD Brands Limited.

[nztx]

Did someone say improvement ? :)

[winner69]

Not much NPAT from $50m ebitda

[nztx]

Hope the Aussie banks dont start thinking about doing some under arm bowling after the last episode :)

[winner69]

In outlook at half year they said about the second half ‘..we will cycling less challenging sales performance last year’

Think that means last year wasn’t that good so this years second half sales should at least come close to last year.

Doesn’t seem to be happening ….but if acworry that start of winter sales have seen trend get worse.

Share price open 40 cents …can’t geT much lower cannit! Alan Gray probably happy

[nztx]

In outlook at half year they said about the second half ‘..we will cycling less challenging sales performance last year’

Think that means last year wasn’t that good so this years second half sales should at least come close to last year.

Doesn’t seem to be happening ….but if acworry that start of winter sales have seen trend get worse.

Share price open 40 cents …can’t geT much lower cannit! Alan Gray probably happy


Only got to look at recent local reports on retail & retail spending. Link that into prolonged interest rate highs, hiked costs for HH's - rates, power, phone, insurance, unemployment, redundancies, layoff's, business closures. collapses etc .. most will know where things are likely heading .. news must be slow reaching KMD Head Office & their Dept of Beancounting :)

[huxley]

Another discounted Bail out Cap Raise soon - shepherded in by Capitain Kirk ? .. or not

Too much more of these sort of rescue missions to pull KMD out of a ditch & folk might start
getting used to the scheme of things and decide to trek off to calmer space elsewhere to
count what remaining coin they have left over :)

This pattern is similar the a Kathmandu winter sale! Mark up the products 50% and then sell them for the real price during the sale period!

[winner69]

Another discounted Bail out Cap Raise soon - shepherded in by Capitain Kirk ? .. or not

Too much more of these sort of rescue missions to pull KMD out of a ditch & folk might start
getting used to the scheme of things and decide to trek off to calmer space elsewhere to
count what remaining coin they have left over :)

No Cap Raise needed nztx

Punters haven’t forgotten the one a few years ago that raised $200m at 50 cents

[winner69]

Jarden reinterred it’s BUY rating with a $1.75 price target….attractive risk reward rating

Probably over shoot that $1.75 and be close to 2 bucks by Christmas

All looking good for KMD as the world faces up to living with covid and not worrying about case numbers or deaths

Sept 21 that was

Talk about Golden Crosses, inflection points etc etc got the market excited

Things gone down hill since

[nztx]

Any optimists staring over the edge prepared to forecast the bottom of recession dip reached ? ;)

[winner69]

Watch the greyhound races in Victoria …looked wet and cold

Commentator said ‘it’s been a brutal start to winter’

Good news for Kathmandu in Oz