Sales of Oboz footwear, a division of New Zealand-based KMD Brands, grew 124% for the six months ended Jan. 31, after recovering from last year’s supply chain constraints caused by the COVID-19 pandemic.
Last fiscal year, Oboz brought in NZ$61.3 million (US$39 million) in sales for the full year, at more than 2,000 wholesale locations, despite being unable to meet “unprecedented customer demand because of COVID impacts on supplier capacity, which has since been scaled up,” the company said in its 2022 annual report.
A three-month closure of Vietnam factories during the pandemic was compounded by international freight delays, affecting about 40% of customer orders, according to the company. Once factories resumed full production in the third quarter of 2022, “strong sales growth resumed.”
KMD purchased Oboz in 2018 for US$60 million in cash and an earn-out of up to US$15 million.
KMD’s outdoor retail banner Kathmandu, which is largely based in New Zealand and Australia, is also on the upswing in the first six months of the current fiscal year, with sales 51% above the first half of fiscal 2022.
The company attributes the sales improvement to the return of travel and tourists spending more on its products, according to a news release.
Overall, KMD Brands is reporting record sales, with group total sales for the first half of 2023 expected to be approximately NZ$546 million (US$347.2 million), up 34% from the same period last year on “particularly positive trading in Australia.”
KMD also owns surf brand Rip Curl.
EBITDA for the first of 2023 is expected to be approximately NZ$45 million (US$28.6 million), up from NZ$10.2 million (US$6.48 million) in the first half of fiscal 2022.
Inventory levels “remain elevated,” according to the company, which it says reflects a decision to avoid future supply chain issues as well as to support growth in demand for Oboz products.
The company expects its inventory balance will become more normal later in the year as purchase orders line up with improved shipping time frames.
According to the company’s annual report, total group sales amounted to NZ$979.8 million (US$632.03 million) for the full year last year, with an underlying EBITDA of NZ$92 million (US$58.5 million).