KMD Brands, previously known as Kathmandu Holdings, has announced its record-breaking sales for the fiscal year 2022. The New Zealand-based company reported a 6.2% increase in sales, reaching NZ$979.8 million (US$577.66 million). This growth can be attributed to the strong performances of its renowned brands, Kathmandu and Rip Curl. In particular, Rip Curl experienced a significant sales increase of 9.5%, totaling $536.8 million for the year.

Despite the challenges posed by the Covid-19 pandemic, KMD Brands achieved exceptional results. CEO and managing director Michael Daly expressed his satisfaction with the company’s success, emphasizing the strength of their brands in contributing to the record-breaking sales. Daly also highlighted the progress made in the company’s strategic pillars, such as establishing global brands, enhancing their digital presence, optimizing operational excellence, and prioritizing environmental, social, and governance (ESG) initiatives.

Rip Curl saw sales growth across various channels and key international regions, especially in Europe, Hawaii, and South-East Asia. With wholesale order books remaining significantly higher than pre-Covid levels, the brand managed to mitigate supply chain disruptions through inventory investment. Kathmandu also experienced a robust recovery, with total sales increasing by 6.8% to $381.6 million. However, Oboz sales faced challenges due to factory closures in Vietnam and international freight delays, resulting in an 18% decline to $61.3 million.

Although KMD Brands reported a 16% decrease in EBITDA to $92 million compared to the previous year, this can be attributed to the impact of Q1 Australasian lockdowns and Covid-related disruptions in the Oboz supply chain. The company’s total profit also decreased by 40% to $36.8 million.

Looking ahead, KMD Brands is focused on executing its growth strategy as the effects of Covid diminish and international travel begins to resume. The company aims to expand its global presence, invest in digital platforms, optimize operational excellence, and lead the industry in sustainability and innovation. Encouragingly, August sales for the group showed a 44.2% increase compared to August 2021 and were 10.3% higher than pre-Covid levels in August 2019.

CEO Michael Daly expressed confidence in the future, anticipating continued sales and earnings growth in FY23. With international travel returning and uninterrupted trade, combined with further strengthening of their Rip Curl, Kathmandu, and Oboz brands, KMD Brands is well-positioned for success in the coming year.

Links:
– [KMD Brands Official Website](KMD Brands Official Website)
– [Rip Curl Official Website](Rip Curl Official Website)