KMD Brands US Tariff Update

KMD BRANDS LIMITED W kmdbrands.com


7
th
April 2025
(All amounts in NZ$ unless otherwise stated)


KMD Brands US Tariff Update


KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) provides an update following
the recent announcement of global tariffs by the United States of America (“US”).
Two of the Group’s brands have significant operations in the US. Rip Curl US accounts for
approximately 12%, and Oboz US approximately 7% of the Group’s annual sales.
The US has announced global tariff increases on products manufactured outside the US,
including significant tariff rate increases on goods sourced from Asian countries. Our Oboz
and Rip Curl product is currently manufactured across Asia.
These tariff increases have created significant uncertainty for most apparel and footwear
businesses which sell into the US and will likely result in price increases that may impact
consumer demand. The Group is monitoring market dynamics, assessing optimal timing of
price increases in response to higher input costs, and reviewing cost mitigation options to
protect profitability.
Until we have more clarity on changes to consumer demand in the US, the Group will
redirect some US inventory to other key global markets, or hold inventory with existing
international third-party logistic (3PL) partners. Both Rip Curl and Oboz have significant
seasonal inventory in the US which was landed prior to the recent tariff increases.
Given significant consumer uncertainty and the fluid nature of possible tariff negotiations, it
remains too early to provide a reliable estimate of the likely financial impact for the remainder
of FY25.
Group CEO and Managing Director, Brent Scrimshaw, said: “The new US tariffs are another
headwind in an already challenging consumer environment in the US. We are evaluating all
strategic options, including pricing, cost mitigation and inventory investment, to safeguard the
long-term value of our brands and protect our stakeholders.”



About KMD Brands
KMD Brands is a global outdoor, lifestyle and sports company, consisting of three iconic
brands: Kathmandu, Oboz and Rip Curl. The Group operates over 300 stores globally, and
our brands are sold in over 8,000 locations. For more information about the Group, visit our
website www.kmdbrands.com.

This announcement has been authorised for release to NZX / ASX by the Board of Directors
of KMD Brands Limited.
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For further information, whether an investor or media enquiry, please contact:
enquiries@kmdbrands.com