KMD Brands, the parent company of outdoor brands Kathmandu and Rip Curl, has announced a considerable increase in sales for the first quarter of fiscal year 2023. With revenues skyrocketing by an impressive 62% compared to the same period last year, the company attributes this growth to the easing of lockdown restrictions in Australasia and a return to more normal trading conditions. Furthermore, first-quarter revenues have increased by 18% compared to the pre-pandemic year of 2020, providing a more accurate representation of the company’s revenue growth.

Notably, direct-to-consumer same store sales saw remarkable growth over the 14-week period. Kathmandu experienced a staggering increase of 107.2%, while Rip Curl achieved a growth rate of 29.7%. This impressive performance can be attributed to robust demand and improved supply chain operations.

In addition to the strong performance of its flagship brands, KMD Brands’ footwear brand Oboz also achieved exceptional results during the first quarter. The brand recorded record-breaking wholesale and online sales, with no longer hindered growth due to supply constraints. This highlights the company’s ability to meet customer demand and capitalize on market opportunities.

Michael Daly, the group CEO and managing director of KMD Brands, expressed his satisfaction with the positive results achieved in the first quarter. He emphasized the strong sales growth across all brands compared to previous years and pre-pandemic levels. Additionally, Daly highlighted the company’s favorable gross margin and profitability, with the group’s underlying operating profit improving by nearly $30 million year-on-year.

While remaining cautiously optimistic about the future, KMD Brands acknowledges the potential challenges that could impact consumer sentiment in key markets. Factors such as high inflation and rising interest rates have the potential to affect the company’s performance. However, the current trading for all three brands remains robust.

As the first half of the fiscal year progresses, KMD Brands recognizes the significance of the upcoming Black Friday and Christmas retail trading periods. These crucial periods will greatly influence the company’s results and determine the overall success of the year.

In conclusion, KMD Brands’ impressive sales growth during the first quarter, surpassing both pre-pandemic and previous year levels, showcases the company’s resilience and ability to adapt to changing market conditions. With a diverse portfolio of popular brands and a cautious yet optimistic outlook for the future, KMD Brands is well-positioned to navigate potential challenges and continue its upward trajectory.

Useful links:
1. Kathmandu
2. Rip Curl