KMD Brands, the parent company of Kathmandu, Rip Curl, and Oboz, has handed down its first-half FY25 results — and it’s a mixed bag. While sales held steady at $470.9 million (up just 0.5% from the same time last year), profitability took a significant hit, with underlying EBITDA falling 74.3% to just $3.9 million. The company also posted a statutory net loss of $20.7 million, citing a challenging global retail environment and wholesale market softness.
Despite the bottom-line weakness, there are a few silver linings. The Group’s direct-to-consumer (DTC) sales — which includes online — continued to shine across all three brands. Online sales posted strong double-digit growth, with Kathmandu’s digital channel surging more than 26%, and Oboz jumping nearly 33%. Online now plays a central role in KMD’s strategy going forward, especially as wholesale remains slow to bounce back.
Rip Curl, the group’s largest brand, managed to lift sales slightly (up 0.1%) despite a 7.9% decline in wholesale revenue. DTC sales were the hero here too, helped by a strong summer and Christmas period, with online revenue up nearly 14%. Kathmandu also saw a 3% sales lift, with Q2 results showing solid momentum, although profitability remains under pressure due to heavy promotional activity and brand refresh spending. Meanwhile, Oboz saw a 6.3% drop in sales as wholesale demand lagged, but its online performance suggests growing brand appeal.
KMD continues to focus on operational efficiency — reducing net working capital by $33.6 million year-on-year and trimming debt to $76.2 million. However, the weaker earnings meant no interim dividend was declared.
Looking ahead, the newly appointed CEO Brent Scrimshaw is optimistic. He’s stepping into the role with a focus on returning the Group to profitable growth, backed by a strong brand portfolio and renewed leadership. While short-term margin pressure remains a reality, the business sees plenty of opportunity in its digital channels and believes it’s well positioned to ride out the current turbulence.
