Trading Update

Kathmandu Holdings Ltd
kathmanduholdings.com
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KATHMANDU HOLDINGS LIMITED

ASX / NZX / MEDIA ANNOUNCEMENT

12 February 2021

Record Rip Curl performance underpins operating profit improvement
and validates the diversification strategy of the Group

• Half year sales growth reflects the successful integration of Rip Curl and the
benefit of a diversified portfolio of brands
• Group EBITDA
1
(unaudited) above last year
• Rip Curl achieved substantial sales growth in key global markets despite COVID-
19 disruptions, with strong wholesale orders for the second half year
• Kathmandu sales impacted by low demand for insulation and rainwear resulting
from the lack of international travelers to the Northern Hemisphere
• Oboz sales above last year driven by product innovation, with order book well
above pre-COVID-19 levels

Kathmandu Holdings Limited (NZX / ASX: KMD) (the Group) today provides the following update on its
unaudited trading performance for the six months ended 31 January 2021 (1H FY21).

Group total sales for 1H FY21 were c.+12% above last year, including a full six month contribution from Rip Curl.
EBITDA is expected to be in the range of $47 million to $49 million, including government subsidies and the
realisation of cost synergies. Group Net Debt is expected to be c.$7 million following careful working capital
management and the $207m capital raise in 2020.

On a pro-forma basis (relative to the same period last year including three months of Rip Curl pre-acquisition):
• Group direct to consumer same store sales, including online, for the 27 full weeks ended 31 January 2021:
o -10.3% adjusted for lockdown closures
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, with Rip Curl +21.0% and Kathmandu -30.0%
o -18.5% unadjusted, with Rip Curl +7.4% and Kathmandu -35.4%
o Online represents 13.0% of direct to consumer sales, up from 8.9% last year
• Group wholesale sales for the six months ended 31 January 2021 were only -11.5% below the same
period last year despite April / May COVID-19 lockdowns significantly impacting the sell-in period, with Rip
Curl -15.0%, and Oboz +3.8%.

During the half, trade at a number of the Group’s stores continued to be disrupted by COVID-19. 60 Greater
Melbourne stores were closed for over 11 weeks during the second lockdown, and 14 Auckland stores were
closed for over two weeks. Trading in Greater Sydney was affected over the Christmas period by the Northern
Beaches outbreak. Airport stores in Australia as well as Rip Curl stores in Hawaii, Bali and Europe are still
impacted adversely by either COVID-19 related travel restrictions or government mandated lockdowns and
closures.

Commenting on the result, Group CEO Xavier Simonet said:

“Our improved first half operating profit underlines the resilience of our Group and validates the diversification
strategy, launched through the successful acquisitions and integrations of Rip Curl and Oboz.”

“Rip Curl’s record first half performance highlights the strength of its brand and quality technical products. Rip
Curl’s direct to consumer business will now begin the Northern Hemisphere summer with strong momentum.
Forward orders for the Rip Curl wholesale business are above pre-COVID-19 levels, with encouraging early
indications for future seasons.”


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Excluding IFRS 16
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Adjusted same store sales removes stores that were not able to open this year for a comparable week because of COVID-19 lockdowns

Kathmandu Holdings Ltd
kathmanduholdings.com
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“Kathmandu enjoyed robust sales growth in camping categories, with renewed interest in local travel and
adventure activities within Australia and New Zealand. However, its performance was heavily impacted by low
demand for insulation and rainwear resulting from the lack of international travelers to the Northern Hemisphere.
To put the first half performance in context, Kathmandu’s profit weighting has historically been heavily weighted
to the second half year, when winter in Australasia drives demand for insulation and rainwear.”

“Oboz have delivered sales growth year on year, with the product innovation strategy pursued by the new Oboz
management team reflecting in the forward order book, which is tracking well above pre-COVID-19 levels.”

Following the resignation of Group CEO Xavier Simonet, the Board has initiated a search process for his
replacement. Mr. Simonet continues to work through his six-month notice period.

The Group intends to release the full result for the half year on Tuesday 23 March 2021. An announcement
regarding dividend resumption will be made at that time.


- ENDS -




This announcement has been authorised for release by the Board.

For further information, please contact:

Investors
Eric Kuret
Market Eye
P: +61 417 311 335

Media
Helen McCombie
Citadel-MAGNUS
P: + 61 2 8234 0103