InvestSMART

KMD Brands Limited (ASX:KMD)

ALERT: Price-sensitive ASX Announcement for KMD
Current share price for KMD : $1.480 0.067 (4.78%)+
Announcement
Release
22 Jul 2026 7:32AM
Price at Release
$1.413
Full Release
download
Summary
KMD Brands Limited provided a trading update for FY26, highlighting expected group sales between $1,040m and $1,044m, which represents a 5% increase from FY25. Direct-to-consumer same store sales showed growth for Kathmandu by 4.8% but a decline for Rip Curl by 2.8%. The projected group underlying EBITDA for FY26 is between $38m and $41m, marking a significant increase compared to the previous year. Kathmandu experienced sales growth in certain categories despite external challenges, while Rip Curl faced decreased sales due to market conditions. Oboz saw a sales resurgence due to strong online sales and new launches. The group's net debt is expected to be higher year-on-year, aligning with strategic financial activities, including a planned divestment of its Southeast Asian manufacturing facility. This move is anticipated to strengthen the balance sheet by generating proceeds and releasing working capital.
Key Points
  • Group sales for FY26 are expected to range from $1,040m to $1,044m, a 5% increase from FY25.
  • Direct-to-consumer same store sales increased by 4.8% for Kathmandu and decreased by 2.8% for Rip Curl.
  • Group underlying EBITDA for FY26 is projected to be between $38m and $41m, a 123% increase at midpoint compared to FY25.
  • Kathmandu's sales improved with strong performances in rainwear, fleece, and base layer categories.
  • Rip Curl's sales were negatively affected by weak consumer sentiment and increased competitor promotion in Australia.
  • Oboz sales returned to growth in Q4 FY26, driven by online performance and new product launches.
  • Net debt is anticipated to be between $63m and $66m by end of July 2026, higher than $52.8m from July 2025.
  • The Group plans to divest its Southeast Asian manufacturing facility over the next 12 months.
  • The divestment is expected to yield $5m to $7m in net property proceeds and release about $6m in working capital.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.