KMD Brands first-quarter performance update

KMD Brands (ASX:KMD) has announced its first-quarter trading results for the financial year ending July 31, 2025. The company experienced an overall sales decline of 5.8% compared to the previous year. Rip Curl, Kathmandu, and Oboz all reported decreased sales, though direct-to-consumer sales showed some improvement. Despite the sales drop, KMD Brands saw an improvement in gross margin, and efforts to manage costs are ongoing amid global inflation challenges.

Outlook and strategy for KMD Brands

KMD Brands has reported a 5.8% decline in overall sales for the first quarter, with Rip Curl, Kathmandu, and Oboz all experiencing year-over-year sales drops. However, the company noted improvements in direct-to-consumer sales for Rip Curl and Kathmandu, particularly in Australia. Despite sales challenges, KMD Brands achieved a higher gross margin and is managing costs effectively amid inflationary pressures. The company remains cautious about consumer sentiment due to the global macroeconomic environment but is optimistic about the upcoming key retail periods, including Black Friday and Christmas, to drive sales growth. KMD Brands is committed to improving profitability and reducing inventory while enhancing brand awareness through new marketing initiatives and product innovations.

Executive insights on KMD Brands' performance

Mr. Daly highlighted the importance of upcoming retail periods for the group's performance and expressed optimism about the improving trends in DTC sales and potential recovery in wholesale sales.