KMD Brands, the parent company of Rip Curl, Oboz and Kathmandu, had a rough year, reporting a net loss of NZ$48.3 million (US$30.58 million), a 231% decline from last year’s profit of NZ$36.6 million (US$23.17 million).
Oboz’s full year sales were down by 20% in fiscal year 2024 to NZ$79.4 million (US$50.17 million) compared to last year.
Wholesale was challenging for Oboz, with wholesale sales decreasing by 23%. The footwear brand achieved record online sales of NZ$7.4 million (US$4.68 million), an increase of more than 30% compared to last year.
Oboz’s EBITDA was NZ$0.2 million (US$0.13 million) compared to NZ$7.9 million (US$4.9 million) the previous year.
“Participation levels and demand have now moderated, leaving the wider market with higher inventory levels and aggressive promotional behavior,” said CEO and Managing Director Michael Daly on the company’s Sept. 25 earnings call.
Total sales among KMD’s three brands were NZ$979.4 million (US$620.1 million), or 11.2% below last year’s results, which Daly attributed to ongoing weakness in consumer sentiment.
“Sales declined for all three of our brands, cycling their strong sales growth achieved last year,” Daly said.
“Despite the challenges on sales, it was pleasing to see gross margin remaining resilient,” he added. Gross margin was 58.9%, just 0.2% lower than last year’s.
The company managed to reduce operating expenditures by 3.6% to NZ$526.5 million (US$333.4 million) compared to last year.
KMD’s Plans for Oboz
Oboz shop-in-shop stores launched in Kathmandu stores in the Australasian region this year, which Daly said will help better position the brand globally. The company will stay focused on broadening its international reach and future growth opportunities, Daly said.
In February 2025 Oboz will launch its Katabatic LT trail-running shoe, a light, breathable, waterproof Gore-Tex shoe.
KMD Brands Cautious on Consumer Sentiment
This year, KMD Brands will be focused on stabilizing sales and returning to growth, growing gross margins, simplifying the business, reducing capital expenses and reinstituting the company’s dividend.
But in the meantime, the company expects consumers and wholesale to continue to be challenging in 2025.
“We remain cautious on consumer sentiment, given the challenging global macroeconomic environment,” Daly said. “Global inflationary pressures are easing, but it will take time to directly impact consumer spending.”
