KMD Brands, the proud owner of popular brands Rip Curl and Kathmandu, is on track to reach a major milestone by surpassing $1 billion in annual sales for the very first time. The company recently provided a trading update and guidance for the full year, revealing that sales for the 12-month period ending on July 31 are projected to be around NZ$1.1 billion (US$690 million). This impressive achievement marks a record-breaking year for the group, with strong sales growth seen across all of its brands in the first three quarters of the financial year.

Although KMD Brands has enjoyed remarkable success, it did highlight that the fourth quarter has presented some challenges. The company has felt the impact of increased cost-of-living pressures, which have led to a dampening of consumer sentiment and subsequently affected sales and retail foot traffic. Specifically, Kathmandu has experienced a slower start to its winter trading period as it compares to the outstanding performance it achieved during the previous winter season. Moreover, a warm start to winter in Australia has also contributed to lower sales and footfall.

Despite these obstacles, KMD Brands remains optimistic and assured stakeholders that the full-year gross margin will remain strong and is anticipated to be consistent with the previous year. The underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to range between $105 million and $110 million, taking into account the remaining three weeks of trading.

Group CEO and Managing Director, Michael Daly, expressed his confidence in the company’s performance, emphasizing their commitment to delivering favorable results for both Kathmandu’s winter season and Rip Curl’s summer season in the northern hemisphere. He also mentioned their ongoing efforts to manage costs effectively for the upcoming year. Daly enthusiastically stated, “We’re looking forward to achieving over $1 billion in sales by the end of the year – a monumental achievement for KMD Brands.”

In other news, KMD Brands announced that Chris Kinraid will be stepping down from his position as Group Chief Financial Officer in December. Kinraid will be transitioning to the role of Chief Executive Officer in another company listed on the NZX.

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