Trading Update

KMD BRANDS LIMITED W kmdbrands.com
16 November 2022
(All amounts in NZ$ unless otherwise stated)
KMD Brands delivers strong sales and profit growth in Q1 FY23
K
MD Brands Limited (ASX/NZX: KMD, “KMD” or the “Company”) is pleased to provide the
following trading update.
•St
rong sales growth across all brands:
oGroup total sales are +61.8% above Q1 FY22, reflecting the removal of Australasi
an
l
ockdowns and a return to more normal trading
oGroup total sales are +17.5% above Q1 FY20
1
, which was pre-COVID and a more
relevant comparison to Q1 FY22
•Q1 FY23 underlying operating profit has improved by nearly $30m year-on-year
•Direct-to-consumer same store sales growth for 14 full weeks ended 6 November 2022:
oKathmandu +107.2%, and Rip Curl +29.7%
•Oboz achieved record Q1 wholesale and online sales, with supply no longer a
constraint. The forward order book and inventory position support ongoing growth
•Group gross margin remains resilient, with improved margin for the Kathmandu brand
C
ommenting on the trading performance, Group CEO & Managing Director Michael Daly
said:
“KMD Brands achieved a positive result in Q1 FY23, with strong sales growth across all
brands compared to both prior year and pre-COVID levels. Pleasingly, gross margin and
profitability are holding up well, with group underlying operating profit for the first quarter of
FY23 improving by nearly $30 million year-on-year.”
“Look
ing forward, while current trading for our three brands is strong, we remain cautiously
optimistic, with the potential of high inflation and rising interest rates impacting consumer
sentiment in our key global markets. As always, the first half year results remain dependent
on the key Black Friday and Christmas retail trading periods still to come.”
Thi
s announcement has been authorised for release to NZX / ASX by the Board of Directors
of KMD Brands Limited.
-E
NDS -
For
further information, please contact:
Investors
Eric Kuret, Automic Markets
P: +61 417 311 335
E: eric.kuret@automicgroup.com.au
Media
Helen McCombie, Citadel-MAGNUS
P: + 61 2 8234 0103
1
At actual exchange rates. Q1 FY20 (pre-COVID) includes Rip Curl sales pre-acquisition.