FY26 Annual Results Announcement

Results announcement
KMD BRANDS LIMITED W kmdbrands.com

Results for announcement to the market
Name of issuer KMD Brands Limited
Reporting Period 12 months to 31 July 2026
Previous Reporting Period 12 months to 31 July 2025
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,053,019 6.5%
Total Revenue $1,053,019 6.5%
Net profit/(loss) from continuing
operations
$(415,959) -337.6%
Total net profit/(loss) $(415,959) -337.6%
Final Dividend
Amount per Quoted Equity
Security
Nil
Imputed amount per Quoted
Equity Security
Nil
Record Date Nil
Dividend Payment Date Nil
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$2.03 $0.07
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
The year end results are based on accounts which have been subject
to audit. Refer to accompanying audited financial statements and
media release for further information.
Authority for this announcement
Name of person

authorised to
make this announcement
Frances Blundell
Contact person for this
announcement
Frances Blundell
Contact phone number +64 3 968 6110
Contact email address companysecretary@kmdbrands.com
Date of release through MAP

Wednesday, 23 September 2026

Audited financial statements accompany this announcement.

---

KMD BRANDS LIMITED W kmdbrands.com


23 September 2026
(All amounts in NZ$ unless otherwise stated)

KMD Brands FY26 Results


KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) today announces its results
for the twelve months ended 31 July 2026 (“FY26”).


FY26 financial summary (vs FY25):

• Group sales up + 6.5% to $1,053.0 million.
• Gross margin increased +1.2% of sales to 57.7%.
• Underlying operating expenses
1
up +4.4% to $565.2 million.
• Underlying EBITDA
1
$ 42.0 million, up +137.7% year-on-year (“YOY”).
• Statutory NPAT loss -$414.4 million, inclusive of a $394m post tax impairment expense.
Underlying NPAT
1
loss -$9.0 million.
• Net Working Capital $196.4 million, $38.7 million higher YOY.
• Net Debt $48.1 million, down $4.7 million YOY.
• No final dividend declared.

Group financial performance

Statutory Underlying
1

NZ$ million
2
FY26 FY26 FY25 Var %
Sales 1,053.0 1,053.0 989.0 6.5%
Gross Profit 607.2 607.2 559.3 8.6%
Gross Margin 57.7% 57.7% 56.5%
Operating Expenses (excl. impairment) (468.1) (565.2) (541.6) 4.4%
Impairment Expense
3
(462.7) - - -
EBITDA (323.6) 42.0 17.7 137.7%
EBIT (455.1) 7.5 (18.0) 141.6%
NPAT (414.4) (9.0) (28.3) 68.4%

Sales momentum has continued through the year, with YOY growth recorded across all three
brands. Kathmandu has led this momentum with strong direct-to-consumer (“DTC”) sales
growth throughout the year. On a constant currency basis, total sales were +1.7% YOY.
Group gross margin increased +120 bps in an environment that continues to be promotionally
driven. Channel and product driven margin improvement, improved sourcing, and favourability
in input cost FX supporting growth inclusive of $8m of tariff refunds.


1
Excluding the impact of IFRS 16, restructuring, software as a service accounting, the notional amortisation of customer relationships,
impairment and onerous contracts.
2
FY26 NZD/AUD conversion rate 0.856 (FY25 0.913), FY26 NZD/USD conversion rate 0.583 (FY25 0.591).
3
In FY25, Oboz intangibles were impaired by $45.4 million.

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Underlying operating expenses fell by -0.2% on a constant currency basis, with the Next Level
cost savings helping to offset strategic growth investments and continued global cost pressure.

An impairment expense of $462.7m has been recognised during the year. This one-off non-
cash item does not impact the day-to-day operations of the Group. This impairment has been
excluded from underlying results. After impairment, the Group recorded a statutory loss after
income tax of $414.4m.


Kathmandu

Kathmandu Underlying
1

NZ$ million FY26 FY25 Var %
Sales 402.3 361.9 11.1%
EBITDA 16.1 (1.3) n.m.
EBIT 1.1 (19.6) 105.7%

Total sales +11.1% YOY with growth achieved while operating four fewer stores than the prior
year. S trong 1H sales momentum continued into the second half, with Q4 closing at +9.4% on
the year. Same store sales (incl. online) +8.2%.

Strong sales results in both Australia (+4.3%

YOY) and New Zealand (+11.7% YOY), with
positive sales growth in every quarter of the year.

Online sales increased by +9.6% to $57.1m, comprising 14.3% of DTC sales.

Gross margin decreased -0.4% of sales YOY due to product mix change, a focus on selling
through aged inventory in the first half and maintaining competitive promotional intensity
through the year. Second half gross margin delivered +0.6% of sales YOY despite being
impacted in the fourth quarter by unseasonally warm weather on the east coast of Australia.

Underlying operating expenses reduced YOY on a constant currency basis, improving
operating leverage with ongoing cost discipline.


Rip Curl

Rip Curl Underlying
1

NZ$ million FY26 FY25 Var %
Sales 571.2 550.4 3.8%
EBITDA 34.4 30.6 12.2%
EBIT 15.4 14.3 7.9%

Total sales +3.8% YOY, helped by YOY movement in FX rates used to convert global sales to
NZD reporting currency.

Wholesale sales +5.5%, with growth in Europe driven by sales mix.

Online sales +9.1% to $45.5m, comprising 13.3% of DTC sales.

On a constant currency basis, total sales were -1.2% YOY.

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Direct-to-consumer total Rip Curl brand store sales (incl. online, exc. Ozmosis) +5.4%, US
retail sales were a highlight, and European summer sales were strong on the back of
favourable climatic conditions. Ozmosis is a regional multi brand Australian retail chain owned
by Rip Curl.

Direct-to-consumer Rip Curl brand same store sales (incl. online, exc. Ozmosis) +1.3%.

Direct-to-consumer multi-brand Ozmosis same stores sales were -5.0%
2
.

Gross margin increased +1.1% of sales, as a result of favourable channel mix and
strengthening exchange rates across key markets and input costs.

Underlying operating expenses down on last year on a constant currency basis, with a
strategic cost reset helping to offset strategic growth investments and continued global cost
pressures.


Oboz

Oboz Underlying
1

NZ$ million FY26 FY25 Var %
Sales 79.5 76.6 3.8%
EBITDA 2.5 (3.3) 175.1%
EBIT 2.0 (4.2) 149.2%

Total sales +3.8% YOY, supported by strong product introductions, improving wholesale
performance and continued digital acceleration.

Online sales saw strong YOY growth of +11.8%, with the website successfully moving onto the
Group online trading platform during the second half.

Wholesale sales +2.8% with growth led by new product introductions.

Gross margin improved +7.3% of sales reflecting favourable channel and product mix plus
one-time tariff refunds ($4.3m).

Operating expenses were tightly controlled, with improved operating leverage versus last year.


Balance sheet

Net working capital outflows largely driven by the YOY decrease in trade and other payables
which was primarily driven by shifted payment timings with key suppliers. However, this drop
was partially offset by a reduction in the group inventory balance, which has now declined for
the fourth consecutive year ( on a constant currency basis down $11.2m), with a continued
focus by all brands to optimise mix and sell through aged inventory.

Net Debt of $48.1m decreased by $4.7m YOY, with the benefit of $61.9m net equity raise
proceeds being offset by working capital phasing at 31 July 2026. The constant currency
impact of the weakening NZ dollar YOY on net debt was $7.3 million.

KMD BRANDS LIMITED W kmdbrands.com



The Group continues to have a strong working relationship and support from its bank
syndicate. The Group remains compliant with all bank covenants at 31 July 2026.


Trading update

Direct-to-consumer same store sales (including online) year on year on a constant currency
basis for the first seven weeks from Monday 27
th
July to Sunday 13
th
September 2026 in a
seasonally non-significant trading period:
• Kathmandu +7.4% YOY, supported by strong growth in New Zealand, and online
channels.
• Rip Curl +1.0% YOY. Rip Curl brand stores +4.0% YOY and Ozmosis multi brand stores
-12.1% YOY. Rip Curl brand stores grew across multiple geographies and online, while
Ozmosis multi-brand stores experienced difficult trading conditions due to product
assortment challenges.


Outlook

The Group remains focused on delivering continued performance improvement in FY27
compared to prior year.

Group FY27 guidance
4
is for:
• Revenue of between $1,055m and $1,075m.
• EBITDA of between $52m and $55m.
• Capital Expenditure of between $15m and $16m.

Kathmandu sales momentum expected to continue with seasonally relevant product flow and
enablement of online fulfilment.

Rip Curl sales are expected to benefit in H1 from first deliveries of ‘Next Gen’ designed
product in market for Australian peak trade. Ozmosis remediation plan in place including
closure of five underperforming stores.

Rip Curl and Oboz wholesale order book consistent with prior year with ongoing management
of dynamic shipping environment.

Group gross margin expansion is anticipated benefiting from foreign exchange hedging
already in place and strategic price increases.

EBITDA reflects revenue expectations with a further $10m of annualised cost saving initiatives
already underway to mitigate inflationary pressure. These cost initiatives for FY27 were taken
to ensure the business maintains its EBITDA growth trajectory in a challenging global
consumer operating environment.

The Group continues to focus on the optimisation of its store network as part of the Next Level
integrated marketplace strategy. Capital expenditure is reduced as technology projects

4
Subject to no adverse change in operating conditions, including future economic headwinds and AUD/NZD exchange rates
impacting NZD reporting currency. Guidance is underlying and excludes one-off items and is inclusive of probability weighted
short-term management incentives ($6m).

KMD BRANDS LIMITED W kmdbrands.com


moderate and targeted store capital expenditure is prioritised. Depreciation is expected to be
in the range of $40 - $41m.

Business review conclusion and outcomes

KMD Brands has made significant progress in strengthening and simplifying the Group, and
the Board remains confident that disciplined execution of the Next Level strategy provides a
clear pathway to improved performance and shareholder value as demonstrated by FY26
operating performance.
As part of the comprehensive business review initiated in May 2026, the Board has considered
the Group’s portfolio, capital requirements and a range of potential value-creation
opportunities. The review was undertaken with independent financial advisory from Deloitte
and Barclay & Co, and legal advice from Chapman Tripp. The review was conducted
objectively and without a predetermined outcome.
The review resulted in actions to simplify the Group and enhance its financial flexibility. These
include the decision to divest the Group’s manufacturing facility in Southeast Asia. The Group
also tested external interest in Rip Curl’s multi-brand retail chain, Ozmosis. No proposal
emerged that offered greater value than continuing to rationalise the chain and improve the
profitability of the remaining store fleet. The review also included a commitment to ongoing
cost reduction through the immediate offshoring of select Group shared services.
Throughout the review process, the Board has received and considered a number of indicative
approaches from external parties and has determined that further engagement with a limited
number of those parties is appropriate. Consistent with its responsibilities to shareholders, the
Board will assess whether any proposal could deliver greater value than continued execution
of the Group's Next Level strategy. The approaches are indicative, non-binding and
incomplete, no decision has been made, and there is no certainty that any proposal or
transaction will result.
This engagement does not change the Group’s strategy, priorities or day-to-day focus.
Management remains focused on delivering the FY27 plan, improving profitability, generating
free cash flow and reducing leverage. The Board will continue to support execution of the
strategy while carefully assessing any credible alternative that may deliver superior
shareholder value and will update the market in accordance with its continuous disclosure
obligations.


KMD Brands ‘Next Level’ transformation strategy

KMD Brands made meaningful progress in FY26 as it executed the first year of its three-year
Next Level turnaround plan. During the year, the Group strengthened its product and
consumer focus, enhanced organisational and technology capabilities, simplified operations
and improved efficiency, creating a more focused and agile business.

Brent Scrimshaw, Group CEO and Managing Director, KMD Brands said:

“FY26 was a year of significant change for KMD Brands as we executed the first year of our
Next Level strategy. The actions taken through Next Level are translating into improved
financial performance. All brands returned to revenue growth in FY26, with Group revenue
increasing by 6.5%, gross margin improving by 120 basis points and underlying EBITDA
increasing 138% to $42.0 million. At the same time, our brand and product-led offence re-

KMD BRANDS LIMITED W kmdbrands.com


centred our focus on the consumer, creating stronger innovation pipelines and a more agile
approach to meeting evolving consumer needs.”


“The progress achieved during FY26 reinforces our belief that there is substantial potential
within the business. We have strengthened our foundations, improved our earnings profile and
created a more focused organisation. While there is more work to do, we enter FY27 with clear
priorities and growing momentum.”

Group Chairman, Philip Bowman said:

“FY26 was a year of renewal for KMD Brands. We strengthened the Board, improved the
Group's financial position, simplified the business and supported Management's disciplined
execution of the Next Level turnaround plan. While further work remains, these initiatives are
creating a more focused, efficient and simplified business as KMD Brands enters FY27.”

“In concluding the business review, the Board has considered a range of approaches from
interested parties. While the Group remains focused on executing its Next Level strategy, we
believe it is appropriate to continue discussions with a small number of parties to determine
whether any opportunity has the potential to deliver superior value for shareholders. These
discussions remain preliminary in nature and there is no certainty that any proposal will lead to
a transaction.”

“The Board's priority is maximising shareholder value. While management remains focused on
improving profitability, generating free cash flow and reducing leverage through the execution
of Next Level, the Board will continue to carefully assess opportunities that may accelerate the
realisation of shareholder value.”


Investor briefing being held today at 8:30am AEST / 10:30am NZST

Brent Scrimshaw (Group CEO), and Carla Webb-Sear (Group CFO) will be holding a briefing
session for investors and analysts at 8:30am AEST / 10:30am NZST today (Wednesday 23
September).
Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmdfy2026.

You may also dial one of the numbers below and provide the conference ID 1914594 to the
operator to listen to the meeting.

• Australia - Toll (Sydney) +61 2 8088 0946
• Australia - Toll Free +61 1800 571 226
• New Zealand - Toll Free +64 800 450 012
• New Zealand - Auckland +64 9 887 4636
• USA & Canada - Toll-Free (800) 715 9871
• United Kingdom - Toll-Free +44 800 260 6466
• France - Toll-Free +33 801 238 862
• Norway - National +47 57 98 94 30
• Spain - Toll-Free +34 800 906909

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The webcast will be available on the KMD Brands investor website following the call.

This announcement has been authorised for release to NZX / ASX by the Board of Directors of
KMD Brands Limited.

- ENDS -

For media and investor enquiries, please contact enquiries@kmdbrands.com
or
Frances Blundell, Chief Legal & ESG Officer and Company Secretary
companysecretary@kmdbrands.com

---

CREATING A
STRONGER
KMD BRANDS
SEPTEMBER 2026

2
CONTENTS
1.EXECUTIVE SUMMARY
2.FY26 RESULT – GROUP FINANCIALS
3.FY26 RESULT – BRAND FINANCIALS
4.UPDATE ON NEXT LEVEL TRANSFORMATION
5.FY27 TRADING AND OUTLOOK
2

3
SECTION 1
EXECUTIVE
SUMMARY
3

4
NEXT LEVEL - CREATING A STRONGER KMD BRANDS
1
2
3
4
5
Growth across all brands in FY26 as momentum in our turnaround continues to build.
Innovative and purpose-led product delivering results across DTC channels.
Continued store optimisation, driving substantial step-change in store profitability profile.
Cost savings overdelivered in the context of an inflationary environment.
Technology and systems investments completed in Australia, enabling simplification and streamlined business processes.

5
ONE YEAR INTO OUR NEXT LEVEL JOURNEY
OUR STRATEGIC PRIORITIESFY26 DELIVERED OUTCOMESWHAT’S NEXT IN OUR 3-YEAR JOURNEY
✓
Reset Kathmandu to focus on product
innovationfor the outdoor consumer.
✓
Rip Curl restructured product engine, SKUs
rationalization and ‘Next Gen’ consumer reset.
✓
Online technology platform delivered to enhance
customer journey.
✓
Group ERP & HRM systems delivered to support
broader growth trajectory.
✓
✓
→
→
→
✓
Reset Oboz brand to focus on the core hiking
customer and accelerated offering to trail category.
Inventory optimisation through automation and ways
of working to enable further inventory efficiency.
✓
✓
Disciplined delivery of next level cost savings in
excess of target ($27.5m vs $25.0m target) with
simplification of the organisational structure.
Reset Kathmandu international business model and
return Rip Curl US to profitability.
Operational efficiency delivered through centralisation
of the DC in Australia.
Strong digital growth across all 3 brands to start
FY27, delivering ROI on platform investments.
Consistent flow of seasonal product launches building
on the trajectory from newness in FY26.
Aligning store segmentation and product
assortment to optimise financial performance.
Further expansion of demand forecasting tools to
drive efficiency in inventory.
Continued focus on right-sizing the store network
against our evaluation framework.
Inventory health and improved stock turns a
continued focus.
→
→
→
→
Productivity initiatives across the supply chain,
automation and product returns.
→
Further investment to accelerate online growth.
Growth opportunities will continue to be assessed
against a rigorous ROI framework.
→

6
CONTINUING MOMENTUM IN NEXT LEVEL TURNAROUND
KEY TAKEAWAYS
Group sales growth achieved with all 3 brands
delivering YOY growth.
✓
OPEX % of Sales reduced by 110 bps driven by cost
savings program and disciplined cost management.
Gross margin expansion reflects ongoing focus on
product mix and marketplace management.
Significant underlying EBITDA growth of 138% YOY.
✓
✓
Underlying EBITDA margin expansion with sales growth and
a reset cost base.
✓
FY26 RESULT SNAPSHOT
1
1.Reflected results are underlying; metrics are compared against last year (FY25).
$1,053M
SALES
+6.5%
SALES GROWTH
57.7%
GROSS MARGIN
53.7%
OPEX % OF SALES
$42.0M
EBITDA
4.0%
EBITDA MARGIN
✓

7
SECTION 2
FY26 RESULT –
GROUP FINANCIALS
7

8
GROUP PROFIT & LOSS
1.Refer to Appendix 1 for a reconciliation of Statutory to Underlying results.
2.FY26 NZD/AUD conversion rate 0.856 (FY25 0.913), FY26 NZD/USD conversion rate 0.583 (FY25 0.591).
GROUP SALES MOMENTUM
•Total sales +6.5% YOY, with strong growth achieved in both the direct-to-consumer (“DTC”)
and wholesale channels. On a constant currency basis, total sales were +1.7% YOY.
•Kathmandu continued momentum with strong DTC sales growth through the year, in both
Australia and New Zealand.
•Rip Curl sales growth supported by the appreciation of the AUD relative to the NZD group
reporting currency, with US and European retail summer sales a highlight, and growing
online channel momentum through H2.
•Oboz wholesale sales grew YOY, supported by new product launches.
GROSS MARGIN REFLECTS STRATEGIC PRICING AND MARKETPLACE MANAGEMENT
•Group gross margin increased +1.2% of sales in an environment that continues to be
promotionally driven, and with multiple macro inflationary pressures. Channel & product
driven margin improvement, improved sourcing, and favourability in input-cost FX
supporting growth inclusive of $8m of tariff refunds.
•2H FY26 gross margin is above 1H FY26 gross margin as initiatives gained traction.
OPERATING LEVERAGE IMPROVED
•Underlying operating expenses fell by -0.2% on a constant currency basis, with Next Level
cost base reset helping to offset strategic growth investments and continued global cost
pressure.
STATUTORY RECONCILIATION
•Statutory loss of $414.4m includes $462.7m intangible asset impairment. Refer to Appendix
1 for reconciliation.
KMD BRANDSStatutory
Underlying
1
NZ $m
2
FY26FY25FY26FY25Var %
SALES1,053.0989.01,053.0989.06.5%
GROSS PROFIT607.2559.3607.2559.38.6%
Gross margin57.7%56.5%57.7%56.5%
OPERATING EXPENSES(930.8)(508.7)(565.2)(541.6)4.4%
% of Sales88.4%51.4%53.7%54.8%
EBITDA(323.6)50.542.017.7137.7%
EBITDA margin %-30.7%5.1%4.0%1.8%
EBIT(455.1)(80.5)7.5(18.0)141.6%
EBIT margin %-43.2%-8.1%0.7%-1.8%
NPAT(414.4)(93.6)(9.0)(28.3)68.4%

9
•DTC sales improved to +1.9% YOY in 1H FY26 driven
by strong growth in North America and Europe across
flagship channels. Trading conditions became more
challenging in 2H FY26, as consumer sentiment
weakened,YOY the brand benefited from favourable
foreign exchange impacts.
•Wholesale sales slowed from +9.8% YOY in 1H FY26
to +2.0% YOY in 2H FY26, with wholesale growth
challenged in Europe.
-2.7%
6.9%
-8.8%
2.5%
13.9%
11.2%
12.0%
9.4%
-35.0%
-25.0%
-15.0%
-5.0%
5.0%
15.0%
25.0%
35.0%
Q1
FY25
Q2
FY25
Q3
FY25
Q4
FY25
Q1
FY26
Q2
FY26
Q3
FY26
Q4
FY26
YOY Sales Variance % by quarter
(Group NZD reporting currency)
•FY26 sales growth was strong across the year, reflecting
continued momentum led by New Zealand and
favourable FX tailwinds. Q4 growth remained strong at
+9.4% despite Australia experiencing a warmer-than-
normal winter and softer retail traffic.
•Importantly, every category grew during the year with the
exception of footwear where assortment mix and OTB
prioritisation impacted results.
•Online sales accelerated following the March Shopify
launch and performance marketing transition, with
eCommerce sales +30% YOY in the five months
following launch, after H1 was reduced by lower
closeout inventory.
•Wholesale performance improved through the year,
supported by new season style orders and flow.
•Quarterly growth was influenced by product and
shipment timing, with Q2 benefiting from the earlier
shipment of new-season product, creating a
corresponding impact in Q3. Q4 returned to strong
growth as forecast with FW26 product launching in
market.
-6.7%
6.5%
-0.5%
9.8%
6.6%
3.0%
4.0%
1.7%
-12.0%
-7.0%
-2.0%
3.0%
8.0%
13.0%
18.0%
Q1
FY25
Q2
FY25
Q3
FY25
Q4
FY25
Q1
FY26
Q2
FY26
Q3
FY26
Q4
FY26
YOY Sales Variance % by quarter
(Group NZD reporting currency)
-8.6%
-1.6%
9.7%
-12.3%
-1.3%
21.1%
-8.9%
15.1%
-35.0%
-25.0%
-15.0%
-5.0%
5.0%
15.0%
25.0%
35.0%
Q1
FY25
Q2
FY25
Q3
FY25
Q4
FY25
Q1
FY26
Q2
FY26
Q3
FY26
Q4
FY26
YOY Sales Variance % by quarter
(Group NZD reporting currency)
QUARTERLY SALES THROUGH FY26

10
DIGITAL MOMENTUM BUILDS AS PRIORITY
GROWTH DRIVER
+9.6%
Group Online Growth
Shopify launch
completed
in Rip Curl & Oboz
enhancing user experience
Successful trial of Ship
from Store
with scaled roll-out
accelerating in FY27
684.2
702.1
752.2
13.6%
14.6%
15.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
FY24FY25FY26
DIRECT TO CONSUMER SALES (NZ $m)
Retail StoresOnlineOnline % of DTC sales
ONLINESales (NZD $m)YOY Var %
% mix of DTC
Sales
45.5+9.1%13.3%
57.1+9.6%14.3%
9.8+11.8%100%
Inventory planning and
allocation challenges
resolved

11
KEY HIGHLIGHTS
•Group inventory balance reduced for the fourth successive year and on a constant currency
basis inventory at Jul 26 was $240.3m. Reduction driven by net 10 less stores, wetsuit factory
wind down and delays in handing over goods due to weather-induced port congestion.
Inventory obsolescence provisions represent 1.5% of gross inventory, 70 bps below Jul 25.
Inventory mix and aging within targeted range.
•Assets Held-for-sale as the Group commenced divestment of the Southeast Asian
manufacturing facility with a phased production wind down and scale up at a new third-party
facility over the next 12 months with the intention to realise value from the sale of land &
buildings and working capital release.
•Intangible assets reduction due to $463m impairment charge of all brands goodwill and brand
assets in current year.
•Right of Use Asset and Lease Liability reduction driven by reduction in store network under
Next level store profitability initiatives.
•Other current liabilities reduction driven primarily by trade and other payables.
•Interest bearing liabilities constant currency impact of $7.4 million with weakening of the NZ
dollar YOY.
BALANCE SHEET
Balance Sheet
NZ $mJul 26Jan 26Jul 25
Cash and cash equivalents41.0 27.4 34.3
Inventories251.5 274.1 254.0
Assets classified as held for sale6.1 - -
Other current assets103.3 90.4 99.4
Property, plant and equipment60.7 74.4 75.3
Intangible assets197.4 647.9 626.1
Right of Use Asset234.0 246.5 243.0
Other non current assets28.2 21.0 18.6
Total assets922.2 1,381.7 1,350.7
Other current liabilities(154.7) (185.2) (191.5)
Interest bearing liabilities(89.0) (121.4) (87.1)
Lease Liabilities(275.3) (287.9) (287.8)
Other non-current liabilities(33.8) (97.9) (94.4)
Total liabilities(552.8) (692.4) (660.8)
Net assets369.4 689.3 689.9

12
KEY HIGHLIGHTS
•Net Working capital % of sales elevated compared to prior year due to lower trade and
other payables as a result of a change in phasing of payment timing as part of overall
trading terms renegotiation with selected suppliers.
•Stock turns improving to 1.76 times from prior year.
•Leverage ratio improvement driven by equity raise.
•Fixed Charge Cover ratio improvement driven by reduction in lease rental and overall
profitability under Next level initiatives.
BALANCE SHEET KEY RATIOS
226.2
198.3
192.6
157.7
179.2
196.4
0.0
40.0
80.0
120.0
160.0
200.0
240.0
Jan 24Jul 24Jan 25Jul 25Jan 26Jul 26
GROUP NET WORKING CAPITAL HALF-YEAR CYCLE
1. Key ratios calculated using 12-month underlying P&L measures.
Key Balance Sheet items and ratios
1
NZ $mJul 26Jan 26Jul 25
Net working capital196.4 179.2 157.7
Inventories251.5 274.1 254.0
Current trade and other receivables96.6 80.0 92.3
Current trade and other payables(151.7) (174.8) (188.7)
Net work ing capital % of sales18.7% 17.5% 15.9%
Stock Turns1.76x 1.56x 1.65x
Net Debt(48.1) (94.0) (52.8)
Leverage Ratio1.2x 3.8x 3.3x
Net Debt to Equity11.5% 12.0% 7.1%
Fixed Charge Cover Ratio (FCCR)1.19x 1.08x 1.03x

13
DEBT
•Net Debt of $48.1m decreased by $4.7m from Jul 25 driven by $61.9m net equity raising offset by
working capital phasing. Constant currency impact of weakening NZ dollar YOY of $7.3m.
•The Group refinanced its existing syndicated sustainability linked debt facilities expiring on 1 October
2028. The new facility also continues to build on the Company’s previous sustainability-linked loan
structure with revised targets that incorporate a pricing mechanism that incentivises ongoing
improvement in achieving the Group’s key environmental, social and governance (ESG) objectives.
•The Group complied with all bank covenants as at 31 July 2026.
•Total facility as at 31 July 2026 denominated in NZD $195.1m consists of an AUD $140.1m multi-
currency revolving facility and a NZD $27.3m multi-currency revolving facility.
•The Group provided lenders with an independent review report on underlying forecasts to satisfy the
FY27 FCCR covenant milestone and subsequent to year-end the multi-option syndicated facility
increased to $NZD 205.2m (AUD $147.3m revolving and NZD $28.8m multi-currency facilities).
NET DEBT AND CAPITAL MANAGEMENT
1. The facility has been translated at a NZD/AUD spot rate of 0.835. Total facilities includes bank guarantees and excludes credit cards. Covenant
definitions included in glossary.
MaturityFacility amountDrawnUndrawn
FY2742.2-42.2
FY28---
FY29152.989.063.9
195.189.0106.1

14
CASH FLOW
1.Adjusted for the impacts of adopting IFRS 16.
•NPAT inclusive of $11.7m in restructuring payments in FY26.
•Working capital outflow YOY was primarily driven by lower trade and other payables
YOY due to a change in phasing of payment timing as part of overall trading terms
renegotiation with selected suppliers.
•The Group renewed its multi-option syndicated facility in June 2026 after negotiating
an extension of its existing syndicated bank facilities in February 2026. The current
interest rate, prior to hedging, on the term loans is 6.56% (2025: 5.23%).
•In April 2026, the Group completed a $65.5m equity raising to strengthen its balance
sheet and liquidity position, generating $61.9m net of costs.
•Capital expenditure declined by $4m compared to the prior year, due to the completion
of IT projects. Store based capex was $9m in the current year.
•No dividend was declared in current or prior financial year as a result of operating
performance.
[Investment]
Cash Flow (NZ $m) FY26FY25
NPAT(414.4)(93.6)
Change in working capital(29.4)42.6
Non-cash items510.5177.1
Operating cash flow66.8126.2
Adjusted operating cash flow
1
(31.7)32.9
Key Line Items:FY26FY25
Net interest paid (including facility fees)
1
(13.3)(12.8)
Net income taxes paid(4.8)(1.7)
Capital expenditure(20.3)(24.6)
Proceeds from share issue61.9-

15
SECTION 3
FY26 RESULT –
BRAND FINANCIALS
15

16
KATHMANDU PROFIT & LOSS
KATHMANDU LEADS GROUP SALES MOMENTUM
•Total sales +11.1% year on year (“YOY”) despite a net reduction of 4 stores. Strong 1H sales
momentum continued into the second half, with Q4 closing at +9.4% YOY.
•Strong sales results in both Australia
2
(+4.3%

YOY) and New Zealand (+11.7% YOY).
•Same store sales (incl. online) +8.2%
3
.
•Sales growth continued to be positive in every quarter of the year.
•Online sales increased by +9.6% to $57.1m, comprising 14.3% of DTC sales.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin decreased -0.4% of sales YOY due to product mix change, a focus on selling
through aged inventory in the first half, and managing competitive promotional intensity through
the year. Second half gross margin momentum delivered +0.6% of sales YOY despite being
impacted in fourth quarter by unseasonally warm weather on the east coast of Australia.
•Underlying operating expenses reduced YOY on a constant currency basis, improving operating
leverage following a strategic cost reset and ongoing cost discipline.
1.Refer to Appendix 2 for a reconciliation of Statutory to Underlying results.
2.At constant exchange rates.
3.Same store sales are for the 52 full weeks ended 26 July 2026 and are measured at constant exchange rates.
361.1
361.9
402.3
13.3%
14.5%
14.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0
100.0
200.0
300.0
400.0
500.0
FY24FY25FY26
SALES
StoresOnline
WholesaleOnline % of DTC
16.0
-1.3
16.1
4.4%
-0.4%
4.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-3.0
2.0
7.0
12.0
17.0
FY24FY25FY26
EBITDA
EBITDAEBITDA margin
NZ $mFY26FY25Var %
SALES402.3361.911.1%
EBITDA (underlying
1
)
16.1(1.3)n.m.
EBITDA margin %4.0%-0.4%
EBIT (underlying
1
)1.1(19.6)105.7%
EBIT margin %0.3%-5.4%
Owned stores152156

17
RIP CURL PROFIT & LOSS
STABLE GLOBAL DIVERSIFIED SALES
•Total sales +3.8% YOY, helped by YOY movement in FX rates used to convert global sales to
NZD reporting currency. On a constant currency basis, total sales were –1.2% YOY.
•Wholesale sales +5.5%, with growth in Europe driven by sales mix.
•Online sales +9.1% to $45.5m, comprising 13.3% of DTC sales.
•Direct-to-consumer total Rip Curl brand store sales (incl. online, exc. Ozmosis) +5.4%, US retail
sales were a highlight, and European summer sales were strong on the back of favourable
climatic conditions.
•Ozmosis is a regional multi brand Australian retail chain owned by Rip Curl since 2011.
•Direct-to-consumer Rip Curl brand same store sales (incl. online, exc. Ozmosis) +1.3%
2 ,
Direct-
to-consumer multi-brand Ozmosis same stores sales were -5.0%
2
.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin increased +1.1% of sales, as a result of favourable channel mix and strengthening
exchange rates across key markets and input costs.
•Underlying operating expenses down on last year on a constant currency basis, with a cost
reset program helping to offset strategic growth investments and despite continued global cost
pressures, delivered underlying EBITDA growth of 12.2%.
1.Refer to Appendix 2 for a reconciliation of Statutory to Underlying results.
2.Same store sales are for the 52 full weeks ended 26 July 2026 and are measured at constant exchange rates.
538.9
550.4
571.2
11.9%
12.5%
13.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
FY24FY25FY26
SALES
StoresOnline
WholesaleLicensing / Other
Online % of DTC
42.030.634.4
7.8%
5.6%
6.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
FY24FY25FY26
EBITDA
EBITDAEBITDA margin
NZ $mFY26FY25Var %
SALES571.2550.43.8%
EBITDA (underlying
1
)
34.430.612.2%
EBITDA margin %
6.0%
5.6%
EBIT (underlying
1
)
15.414.37.9%
EBIT margin %
2.7%
2.6%
Owned stores166172

18
OBOZ PROFIT & LOSS
OBOZ RETURNS TO SALES GROWTH AND POSITIVE EARNINGS
•Total sales +3.8% YOY, supported by strong product introductions, improving wholesale
performance and continued online acceleration.
•Online sales recorded strong YOY growth of +11.8%, with ecommerce successfully moving onto
the group online trading platform during the second half.
•Wholesale sales +2.8% with growth led by new product introductions, seasonal flow and strong at-
once sales.
GROSS MARGIN AND OPERATING EXPENSES
•Gross margin improved +7.3% of sales reflecting favourable channel and product mix plus one-
time tariff refunds ($4.3m).
•Operating expenses were tightly controlled, with improved operating leverage versus last year.
•Note: The Kathmandu segment includes FY26 $7.1m sales of Oboz products in Kathmandu AU &
NZ stores at full vertical gross margin (FY25 $7.1m).
1.Refer to Appendix 2 for a reconciliation of Statutory to Underlying results.
79.4
76.6
79.5
0.0
20.0
40.0
60.0
80.0
100.0
FY24FY25FY26
SALES
OnlineWholesale
-0.2
-3.3
2.5
-0.3%
-4.3%
3.1%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
FY24FY25FY26
EBITDA
EBITDAEBITDA margin
NZ $mFY26FY25Var %
SALES79.576.63.8%
EBITDA (underlying
1
)2.5(3.3)175.1%
EBITDA margin %3.1%-4.3%
EBIT (underlying
1
)2.0(4.2)149.2%
EBIT margin %2.6%-5.4%

19
SECTION 4
UPDATE ON
NEXT LEVEL
TRANSFORMATION
19

20
WHAT WE SAIDWHAT WE’VE DELIVEREDWHAT IS NEXT IN FY27
Reboot growth at the right
level of profitability
✓Grew revenue +6.5% YOY and continued effective gross margin
management for all brands despite challenging macro conditions.
✓Reset of International Operations for all three brands.
►Deliver sustainable brand sales growth and continued gross margin
expansion.
►Drive new Kathmandu international distributor model.
Reset strategy on three core
brands
✓Faster product innovation, speed to market and storytelling, sharper
channel right assortments.
►Scaling product-led growth and channel discipline to build sustained brand
momentum and margin improvement.
Cost reset in FY26
✓Delivered $27.5m cost savings in FY26, OPEX -0.2% on constant currency
basis.
✓Strategic growth investments moderated to $8.7m in year with ROI focus.
►Continued assessment for simplification and cost savings including
offshoring.
►Maintain cost growth in line with inflation.
Store profitability
✓Delivered on 17 closures in FY26. 11 in Rip Curl and 6 in Kathmandu.
►On-going evaluation of stores against clear criteria to determine optimal
profitability and ROI for store portfolio. 10 Rip Curl and 5 Kathmandu in
FY27.
Improved inventory
management
✓Inventory mix improved in FY26 while managing global supply chain
disruption.
►Working capital investment significantly lower than FY26 driving operating
cashflow generation and further deleveraging.
Review non-core assets
✓Wind down of OnSmooth, first production run in partner wetsuit factory
completed.
►OnSmooth wind down completion in FY27.
►Right-sizing of Ozmosis post business review.
DELIVERING CRITICAL PROOF POINTS IN YEAR 1 OF NEXT
LEVEL TURNAROUND


21
•Connected consumer experiences
•Authentic products
•Iconic franchises
•Distinctive design and style
•Accelerated go-to-market
•Commercially oriented
1
A brand and product-led
offence
‘NEXT LEVEL’ TURNAROUND IS ON TRACK
Enabled through intelligent
decisions and processes
•Brand decisions are informed and
supported by data-driven shared services
•Efficient, scalable processes
across the portfolio, incl. supply chain
excellence
•Technology-enabled system integration
2
That delivers sustainable
profitability
•Cost justified by growth guardrails
•On-going focus on simplification
•Portfolio-wide capital allocation
ROI prioritised
•Optimised for shareholder returns
3

22
•Growth across all Apparel and Equipment
•Collaborations, Limited Edition and Quick to
Market Product Launched
•NZOC Partnership Milano-Cortina and Glasgow
•Store Network Review: 6 Store Closures
•Substantial Store Profitability Improvements
•Exited Direct International Operations
•New Distributor Markets Signed
•Improved Operating Leverage
•Improvements in Conversion and Average
Transaction Value in store and online
•8.2% Same Store Sales Growth
•Trailhead Pack: ISPO Award
•XT Jacket and Pack: ISPO Award
•Improved Brand Strength
INITIATIVES TO DRIVE NEXT LEVEL AT KATHMANDU
BRAND
STRATEGY
WHAT HAS BEEN DONEWHAT IT ENABLES
Accelerated product
strategy
•Enhanced seasonal product assortment
•Limited-quantity ranges on faster timelines
✓Product relevance, brand buzz and
faster trend response
Brand storytelling &
innovation
•Innovation embedded in seasonal launches
•XT Series product launched
•Next-gen concept store rollout completed
✓Authentic positioning across
outdoor and adventure categories
Profitable channel
mix / Integrated
Marketplace
•Improved pricing and markdown strategy
•Assortment alignment to store segmentation
✓Reset consumer expectations on
product and brand value
✓Optimised store network for
profitability
•Digital platform re-engineered
•Ship from store and Click and Collect launched
✓More efficient online sales and
accelerated revenue growth
International
Strategy
•Shift to distributor-led and digital expansion
•Priority markets identified
✓Capital light new market opportunity
Strong capability
•Established leadership team and capability mix in place
•Investment in store staff training
✓Confidence in strategic and
operational execution
FY26 SUCCESS MEASURES
22
1

23
FUNDAMENTAL METRICS THAT UNDERPIN OUR
TRANSFORMATION
+11.1%
TOTAL SALES
YOYdespite
fewer stores
+8.2%
SAME-STORE
SALES
Including online
+105.7%
EBIT
GROWTH
RIGHT STORES
IN RIGHT
LOCATIONS
PRODUCT
STRATEGY AND
INNOVATION
KMD Brands evaluation criteria:
•Geographic alignment with
strategy
•Connect brand store
segmentation and category
vision
•Threshold profitability
•Continue to ground product in
authentic and technical
performance
•Product assortment aligned to
store segmentation
•Increasing focus on core ranges
and return to growth in footwear
with OTB investment
DEMAND
STORE TRAFFIC
CONVERSION
UPT
ATV
INSULATION CATEGORY
BASKET QUALITY
PRODUCT MIX
STORE MIX
ALL FOCUS CATEGORIES
STORES THAT MEET
PROFITABILITY HURDLES

24
BRAND
STRATEGY
WHAT HAS BEEN DONEWHAT IT ENABLES
Next Gen brand reset
•“Next Gen” focus across product, brand and athletes
•Sharpened positioning around The Search relaunch
✓Clear, authentic surf brand with
modern appeal
Growth beyond core
•Expanded from surf-only to surf + beach lifestyle
•Trialled women-focused stores (e.g. Bondi)
✓Alignment of product and beach
distribution
Return US to
profitability
•Resized North American operations
•Store closures and costs base reduction
✓Stable, profitable, US business
anchored by Hawaii
Digital uplift
•Rebuilt online platform
•Reset digital capability and operating model
✓Higher online sales efficiency and
lower costs
Product simplification
•Innovation focused on core surf categories
•Centralised product engine and reduced SKUs by +2000
✓Clearer product DNA and lower
COGS
Increased digital traffic, especially on more
youthful platforms (e.g. TikTok). Higher sales
mix from youth customers connected to Next
Generation product injections
13% comp-store sales growth in Hawaii in
FY26
Beach-segmentation stores materially
outperformed core-segmentation stores on a
like-for-like basis across Australia and the USA
INITIATIVES TO DRIVE NEXT LEVEL AT RIP CURL
Online was best-performing channel in FY26,
led by double digit growth in ANZ; growth
accelerated through Q4
Material reduction (~20%) in style counts;
increase in average volume
FY26 SUCCESS MEASURES
24
1

25
25
BRAND
STRATEGY
WHAT HAS BEEN DONEWHAT IT ENABLES
More with the core
•Accelerated Core innovation led by Sawtooth Ascent;
advanced Sawtooth LT for SS27
✓Modernises and strengthens the
Core Hike franchise
Accelerate ‘fast’
category
•Advanced next-gen Fast Hike through Katabatic II
✓Aligns with demand for lighter, faster
trail products and adds Trail
Running as an adjacent growth
category
•Launched re-entry into Trail Running
Products that open
all-terrain
opportunities
•Expanded All-Trail through Bozeman II
✓More consumer entry points and
use occasions
•Activated ‘Re-wild’ Vault and broadened consumer
engagement
✓Greater cultural relevance around
the brand
Channel diversity
•Sharpened priority account and channel focus
•Refined assortments to build a stronger growth foundation
✓Improves channel productivity
✓Creates a more intentional path to
growth
Digital uplift
•Launched Shopify and transitioned performance marketing
✓Stronger direct consumer engine
✓Improved traffic, acquisition,
experience and conversion
INITIATIVES TO DRIVE THE NEXT LEVEL AT OBOZ
• FY26 wholesale sales growth
• Priority account performance improved
• Focused assortments; better productivity
• Katabatic Storm: ISPO Award
• LT Low GTX: top-five eCommerce style
• Katabatic II: SS27 sell-in at plan
• Marketing transition + funnel strategy complete
• Shopify launched in March
• eCommerce +30% YOY in five months
• Ascent: sell-in / sell-through growth
• REI launch accelerated; FY27 plan set for FW26
• Sawtooth LT: SS27 sell-in
Return to positive EBITDA
• Bozeman II: #1 eCommerce / 90 days
• Sawtooth II +15%
• Gorp Girls bought to sell out, sold out <48h
across eComm + wholesale
FY26 SUCCESS MEASURES
25
1

26
DISCIPLINED OPERATIONS AND EXECUTION
2
WHY
FY26 OUTCOMES
ONLINEAS A
GROWTH
DRIVER
TECHNOLOGY
& SYSTEMS
Modern, fit for purpose
systems that enable our
growth trajectory
INVENTORY
EFFICIENCY
Right product, right time,
right locations
Migrated Rip Curl and
Oboz to the Shopify
platform

Successful
implementation of the
Group ERP at Rip Curl
Launched HRM across all
brands and regions
Enhanced reporting via
business intelligence tooling
to optimize inventory
Ongoing enhancement of
our performance
marketing capabilities
Successful trial of ‘Ship from
Store’, and the roll out of
Click & Collect
Achieved targeted
reduction in Rip Curl’s
product range by
removing 2,000+ SKUs
Trialed AI-enabled
inventory management tool
Improved terms with
manufacturers and
negotiated efficiencies on
freight and logistics
Digital revenue growth is
our largest revenue
opportunity

27
COST SAVINGS OVER-DELIVERED WHILE INVESTING IN
STRATEGIC GROWTH
3
27.5
8.7
17.9
0
520
530
540
550
FY25 Opex
Cost Reduction
Growth
Investment
CODB
Inflation
FY26 Opex
541.6
540.3
Opex profile change $m; FY25-FY26
constant currency basis
WHAT WE SAID WE WOULD DOWHAT WE DID
COST RESET
GROWTH
INVESTMENT
COST OF
DOING
BUSINESS
(CODB)
•Cost reset across the portfolio
•Major initiatives include organisational
structure, marketing and store optimisation and
DC consolidation
Target ~$25m
Target ~$15m
Overdelivered with $27.5m
in cost savings
•Focus on both short and medium-term growth
•Maintain flexibility in investment allocation, with
stage-gated approach based on growth hurdle
rates
•Investments focused on online reset, product
innovation, store network performance and
capacity to support business execution
Reduced strategic
investments to $8.7m with
store & digital investment
held back
Cost inflation successfully
managed at
3% despite
inflationary headwinds
•Hold baseline cost inflation at less than 3% pa
despite embedded retail lease increases and
store wage award increase

28
Store fleet segmentation continues into FY27
FY26
STORES
318
NET STORE
MOVEMENT IN FY26
-10
NET STORE
MOVEMENT IN FY27
-10
FY26
OPENINGS
+2
FY27 TARGETED NET MOVEMENT
- 5- 5
FY26
CLOSURES
-6
FY27 TARGETED NET MOVEMENT
FY26
OPENINGS
FY26
CLOSURES
+5
-11
STORE NETWORK
Next Generation
flagship store
program
completed in
FY26

29
SECTION 5
FY27 TRADING AND
OUTLOOK
29

30
TRADING UPDATE
30
Direct-to-consumer same store sales (including online) year on year (“YOY”) on a constant
currency basis¹ for the first 7 weeks from Monday 27
th
July to Sunday 13
th
September 2026
in a seasonally non-significant trading period:
•Kathmandu +7.4% YOY, supported by strong growth in New Zealand, and online channels.
•Rip Curl +1.0% YOY. Rip Curl brand stores +4.0% YOY and Ozmosis multi brand stores
-12.1% YOY. Rip Curl brand stores grew across multiple geographies and online, while
Ozmosis multi brand stores experienced difficult trading conditions due to product
assortment challenges.
1.Sales results for the7 full trading weeks from Monday 27 July 2026 to Sunday 13 September 2026 include online
and are sourced from BI reports and measured at constant currency YOY.

31
OUTLOOK AND FY27 GUIDANCE
Outlook
The Group remains focused on delivering continued performance improvement in FY27 compared to prior year.
FY27 Guidance
•Kathmandu sales momentum expected with seasonally relevant product flow and enablement of online fulfilment.
•Rip Curl sales are expected to benefit in H1 from first deliveries of ‘Next Gen’ designed product in market for Australian
peak trade. Ozmosis remediation plan in place including closure of five underperforming stores.
•Rip Curl and Oboz wholesale order book consistent with prior year with ongoing management of dynamic shipping
environment.
•Group gross margin expansion is anticipated benefiting from FX hedging already in place and strategic price increases.
•EBITDA reflects revenue expectations with a further $10m of annualised cost saving initiatives already underway to
mitigate inflationary pressure. These cost initiatives for FY27 were taken to ensure the business maintains its EBITDA
growth trajectory in a challenging global consumer operating environment.
•The Group continues to focus on the optimisation of its store network as part of the Next Level integrated marketplace
strategy. Capital expenditure is reduced as technology projects moderate and targeted store CAPEX is prioritised.
Depreciation is expected to be in the range of $40 - $41m.
1.Subject to no adverse change in operating conditions, including future economic headwinds and AUD/NZD exchange rates impacting NZD reporting currency. Guidance is underlying and excludes one-off
items and is inclusive of probability weighted short-term management incentives ($6m).
SALES1,055 - 1,075
EBITDA52 - 55
CAPEX15 - 16
NZ $mFY27 guidance¹

32
BUSINESS REVIEW CONCLUSION AND OUTCOMES
KMD Brands has made significant progress in strengthening and simplifying the Group, and the Board remains confident that disciplined execution of
the Next Level strategy provides a clear pathway to improved performance and shareholder value as demonstrated by FY26 operating performance.
As part of the comprehensive business review initiated in May 2026, the Board has considered the Group’s portfolio, capital requirements and a
range of potential value-creation opportunities. The review was undertaken with independent financial advisory from Deloitte and Barclay & Co, and
legal advice from Chapman Tripp. The review was conducted objectively and without a predetermined outcome.
The review resulted in actions to simplify the Group and enhance its financial flexibility. These include the decision to divest the Group’s
manufacturing facility in Southeast Asia. The Group also tested external interest in Rip Curl’s multi-brand retail chain, Ozmosis. No proposal emerged
that offered greater value than continuing to rationalise the chain and improve the profitability of the remaining store fleet. The review also included a
commitment to ongoing cost reduction through the immediate offshoring of select Group shared services.
Throughout the review process, the Board has received and considered a number of indicative approaches from external parties and has determined
that further engagement with a limited number of those parties is appropriate. Consistent with its responsibilities to shareholders, the Board will
assess whether any proposal could deliver greater value than continued execution of the Group's Next Level strategy. The approaches are indicative,
non-binding and incomplete, no decision has been made, and there is no certainty that any proposal or transaction will result.
This engagement does not change the Group’s strategy, priorities or day-to-day focus. Management remains focused on delivering the FY27 plan,
improving profitability, generating free cash flow and reducing leverage. The Board will continue to support execution of the strategy while carefully
assessing any credible alternative that may deliver superior shareholder value and will update the market in accordance with its continuous disclosure
obligations.

33
QUESTIONS

34
APPENDICES

35
APPENDIX 1: STATUTORY TO UNDERLYING PROFIT AND LOSS
1.Statutory results include the impact of IFRS 16 leases. The impact of IFRS 16 is excluded from Underlying results.
2.Restructuring and organisational change was undertaken in FY25 and FY26. These one-off costs have been excluded from Underlying results.
3.IFRIC Software as a Service (“SaaS”) capitalisation adjustments have been excluded from Underlying results.
4.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.
5.Intangible asset impairments $462.4m (FY25: $45.4m), Other asset impairment and onerous contracts $0.6m (FY25: $16.5m).
GROUPFY26FY25
SaaSAmortisationImpairment andSaaSAmortisationImpairment and
NZ $mStatutory
IFRS 16
Leases
1
Restructuring
2
Capitalisation
Adjustments
3
of Customer
Relationships
4
onerous
contracts
5
UnderlyingStatutory
IFRS 16
Leases
1
Restructuring
2
Capitalisation
Adjustments
3
of Customer
Relationships
4
onerous
contracts
5
Underlying
SALES
1,053.0 - - - - - 1,053.0 989.0 - - - - - 989.0
GROSS PROFIT
607.2 - - - - - 607.2 559.3 - - - - - 559.3
Gross margin57.7%57.7%56.5%56.5%
OPERATING EXPENSES
(930.8) (111.5) 11.7 2.4 - 463.0 (565.2) (508.7) (103.7) 6.1 2.9 - 61.9 (541.6)
% of Sales88.4%53.7%51.4%54.8%
EBITDA
(323.6) (111.5) 11.7 2.4 - 463.0 42.0 50.5 (103.7) 6.1 2.9 - 61.9 17.7
EBITDA margin %-30.7%4.0%5.1%1.8%
EBIT
(455.1) (18.5) 12.4 2.4 3.3 463.0 7.5 (80.5) (11.2) 6.1 2.9 3.7 61.0 (18.0)
EBIT margin %-43.2%0.7%-8.1%-1.8%
NPAT
(414.4) (1.2) 8.8 1.7 2.3 393.8 (9.0) (93.6) 2.6 4.3 2.0 2.6 53.8 (28.3)

36
APPENDIX 2: SEGMENT NOTE
1.Statutory results include the impact of IFRS 16 leases. The impact of IFRS 16 is excluded from Underlying results.
2.Restructuring and organisational change was undertaken in FY25 and FY26. These one-off costs have been excluded from Underlying results.
3.IFRIC Software as a Service (“SaaS”) capitalisation adjustments have been excluded from Underlying results.
4.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.
5.Intangible asset impairments $462.4m (FY25:$45.4m), Other asset impairment and onerous contracts $0.6m (FY25: $16.5m).
FY26FY25FY26
SALES (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
SALES per segment note
571,201 402,277 79,541 - 1,053,019 550,444 361,940 76,631 - 989,015
SALES (Underlying)
571,201 402,277 79,541 - 1,053,019 550,444 361,940 76,631 - 989,015
EBITDA (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBITDA per segment note
(205,173) (69,217) (34,267) (14,974) (323,631) 65,116 48,961 (48,821) (14,710) 50,546
IFRS 16 Leases
1
(48,581) (62,296) (587) - (111,464) (46,432) (56,745) (550) - (103,727)
Restructuring
2
8,534 1,416 572 1,201 11,723 2,451 (91) 284 3,438 6,082
SaaS Capitalisation Adjustments
3
- - - 2,413 2,413 - - - 2,903 2,903
Amortisation of Customer Relationships
4
- - - - - - - - - -
Impairment and onerous contracts
5
279,573 146,226 36,736 437 462,972 9,494 6,560 45,818 - 61,872
EBITDA (Underlying)
34,353 16,129 2,454 (10,923) 42,013 30,629 (1,315) (3,269) (8,369) 17,676
EBIT (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBIT per segment note
(267,784) (136,744) (35,436) (15,168) (455,132) 4,224 (19,336) (50,532) (14,887) (80,531)
IFRS 16 Leases
1
(8,715) (9,779) (35) - (18,529) (4,676) (6,539) 53 - (11,162)
Restructuring
2
9,236 1,416 572 1,201 12,425 2,451 (91) 284 3,438 6,082
SaaS Capitalisation Adjustments
3
- - - 2,413 2,413 - - - 2,903 2,903
Amortisation of Customer Relationships
4
3,131 - 211 - 3,342 3,483 - 209 - 3,692
Impairment and onerous contracts
5
279,573 146,226 36,736 437 462,972 8,831 6,363 45,818 - 61,012
EBIT (Underlying)
15,441 1,119 2,048 (11,117) 7,492 14,313 (19,603) (4,168) (8,546) (18,004)

37
APPENDIX 3: CONSTANT CURRENCY
PROFIT & LOSS
1.Refer to Appendix 1 for a reconciliation of Statutory to Underlying results.
2.Constant Currency Underlying results are calculated by consolidating FY26 global local currency Underlying results at FY25 FX conversion rates.
3.FY26 NZD/AUD conversion rate 0.856 (FY25 0.913), FY26 NZD/USD conversion rate 0.583 (FY25 0.591).
37
KMD BRANDS
Underlying
1
Underlying
at Constant Currency
2
NZ $m
3
FY26FY25Var %FY26FY25Var %
SALES1,053.0989.06.5%1,006.2989.01.7%
GROSS PROFIT607.2559.38.6%579.3559.33.6%
Gross margin57.7%56.5%57.6%56.5%
OPERATING EXPENSES(565.2)(541.6)4.4%(540.3)(541.6)(0.2%)
% of Sales53.7%54.8%53.7%54.8%
EBITDA42.01317.676137.7%39.117.7121.0%
EBITDA margin %4.0%1.8%3.9%1.8%
EBIT7.5(18.0)141.6%6.1(18.0)133.9%
EBIT margin %0.7%-1.8%0.6%-1.8%
NPAT(9.0)(28.3)68.4%(9.6)(28.3)65.9%

38
979.8
1,103.0
979.4
989.0
1,053.0
FY22FY23FY24FY25FY26
SALES BY REGION (NZ $m)
AustraliaNew ZealandNorth AmericaEuropeRest of World
SALES MIX FY26
APPENDIX 4: DIVERSIFIED SALES
54%
Rip Curl
38%
Kathmandu
8%
Oboz
BY
BRAND
61%
Retail
11%
Online
27%
Wholesale
1%
Licensing / Royalties
BY
CHANNEL
51%
Australia
11%
New Zealand
21%
North
America
11%
Europe
6%
Rest of World
BY
REGION

39
EUROPE
~$115m Sales
32 Owned Stores
10 Licensed Stores
~1,900 Wholesale Doors
We operate over 300 stores globally, and our brands are sold in over 8,000 locations
NORTH AMERICA
~$220m Sales
26 Owned Stores
27 Licensed Stores
~3,900 Wholesale Doors
Global office locations
AUSTRALASIA
~$650m Sales (82% Australia)
254 Owned Stores
20 Licensed Stores
~900 Wholesale Doors
ASIA
~$40m Sales
72 Licensed and JV stores
~300 Wholesale Doors
SOUTH AMERICA
~$15m Sales
6 Owned Stores
107 Licensed Stores
~800 Wholesale Doors
AFRICA / MIDDLE EAST
37 Licensed Stores
APPENDIX 5: GLOBAL REACH AND DIVERSIFICATION

40
APPENDIX 6: KMD BRANDS STRATEGY HOUSE FY26 - FY28

41
APPENDIX 7: OUR FINANCIAL AMBITION OVER OUR THREE
YEAR JOURNEY
GROSS
MARGIN
OPERATING
EXPENSE
% OF SALES
EBITDA
2

MARGIN
NET WORKING
CAPITAL
% OF SALES
~60%<50%10%+<16%
1.Prior period restatement (Jul-23 / Jul-24): following an accounting system change at the Group’s wetsuit manufacturer, production labour and overhead costs have now been mapped to cost of sales. There was no impact on the Group’s EBITDA or net profit.
2.Refer to Appendix 1 for a reconciliation of Statutory to Underlying results.
58.3%
58.4%
56.5%
57.7%
60.0%
Jul 23Jul 24Jul 25Jul 26Target
Jul 28
GROSS MARGIN
1

% of sales
48.7%
53.2%
54.8%
53.7%
50.0%
Jul 23Jul 24Jul 25Jul 26Target
Jul 28
OPERATING EXPENSES
1,2
% of sales
>>
9.6%
5.1%
1.8%
4.0%
10.0%
Jul 23Jul 24Jul 25Jul 26Target
Jul 28
EBITDA MARGIN
2
% of sales
>>
19.9%
20.3%
15.9%
18.7%
16.0%
Jul 23Jul 24Jul 25Jul 26Target
Jul 28
NET WORKING CAPITAL
% of sales
>>
>>

42
TERMDEFINITION
Net Working CapitalInventories plus current trade and other receivables less current trade and
other payables.
NPATNet profit after tax.
Same store salesFY25 same store sales are for the 52 full weeks ended 27 July 2025 and
are measured at constant exchange rates. Measures the year-on-year
sales percentage variance for retail and online stores that traded for
comparable days in both this year and last year.
Stock TurnsCost of sales divided by average inventories year-on-year. Measured on a
rolling 12-month basis.
Underlying EBITEBIT excluding the impacts of IFRS 16 leases, restructuring, software as
a service accounting, the notional amortisation of customer relationships,
impairment and onerous contracts. Refer to Appendix 1 for a full
reconciliation of Statutory to Underlying results.
Underlying EBIT
Margin
Underlying EBIT divided by sales.
Underlying EBITDAEBITDA excluding the impacts of IFRS 16 leases, restructuring, software
as a service accounting, impairment and onerous contracts. Refer to
Appendix 1 for a full reconciliation of Statutory to Underlying results.
Underlying EBITDA
Margin
Underlying EBITDA divided by sales.
Underlying
Operating Expenses
Operating expenses excluding the impacts of IFRS 16 leases,
restructuring, software as a service accounting, impairment and onerous
contracts. Refer to Appendix 1 for a full reconciliation of Statutory to
Underlying results.
YOYYear-on-year.
GLOSSARY
TERMDEFINITION
DTC salesDirect-to-consumer sales. Includes all sales from retail stores, online
stores and marketplaces.
EBITEarnings before interest and tax.
EBITDAEarnings before interest, tax, depreciation, and amortisation.
Financial GuardrailsThe Group has financial guardrails that guides shareholder value creation,
optimal capital structure and capital allocation. The guardrails have four
pillars supported by measurable targets, aligned with those of
shareholders. Refer to slide 28 for further detail.
Fixed Charge Cover
Ratio (FCCR)
The sum of underlying EBITDA and rent divided by the sum of underlying
rent and net finance costs excluding FX. Measured on a rolling 12-month
basis.
Leverage RatioNet debt divided by underlying EBITDA (per covenant measurement
definitions). Measured on a rolling 12-month basis.
n.m.Not meaningful.
Net DebtInterest bearing liabilities less cash and cash equivalents (excluding IFRS
16 leases).
Net Debt to EquityNet debt divided by the sum of net debt and equity.
Net Income Taxes
Paid
Income tax paid less income tax received.
Net Interest PaidInterest paid less interest received. Adjusted for impacts of IFRS 16
leases.

43
IMPORTANT NOTICE AND DISCLOSURE
This presentation prepared by KMD Brands Limited (the “Company” or the “Group”)
(NZX/ASX:KMD) provides additional comment on the financial statements of the Company, and
accompanying information released to the market. As such, it should be read in conjunction with
the explanations and views in those documents.
This presentation is not a prospectus, investment statement or disclosure document, or an offer
of shares for subscription, or sale, in any jurisdiction.Past performance is not indicative of future
performance and no guarantee of future returns is implied or given.
The information contained in this presentation is not investment or financial product advice and is
not intended to be used as the basis for making an investment decision. This presentation has
been prepared without taking into account the investment objectives, financial situation or specific
needs of any particular person. Potential investors must make their own independent assessment
and investigation of the information contained in this presentation and should not rely on any
statement or the adequacy or accuracy of the information provided.
This presentation includes certain “forward-looking statements” about the Company and the
environment in which the Company operates. Forward-looking information is inherently uncertain
and subject to contingencies, known and unknown risks and uncertainties and other factors,
many of which are outside of the Company’s control, and may involve significant elements of
subjective judgement and assumptions as to future events which may or may not be correct. A
number of important factors could cause actual results or performance to differ materially from
the forward-looking statements. No assurance can be given that actual outcomes or performance
will not materially differ from the forward-looking statements. The forward-looking statements are
based on information available to the Company as at the date of this presentation.
To the maximum extent permitted by law, none of the Company, its subsidiaries, directors,
employees or agents accepts any liability, including, without limitation, any liability arising out of
fault or negligence, for any loss arising from the use of the information contained in this
presentation. In particular, no representation or warranty, express or implied, is given as to the
accuracy, completeness or correctness, likelihood of achievement or reasonableness of any
forecasts, prospects, statement or returns contained in this presentation. Such forecasts,
prospects, statement or returns are by their nature subject to significant uncertainties and
contingencies. Actual future events may vary from those included in this presentation.
The statements and information in this presentation are made only as at the date of this
presentation unless otherwise stated and remain subject to change without notice. Some of the
information in this presentation is based on unaudited financial data which may be subject to
change. Information in this presentation is rounded to the nearest hundred thousand dollars,
whereas the financial statements of the Company are rounded to the nearest thousand dollars.
Rounding differences may arise in totals, both dollars and percentages.
All intellectual property, proprietary and other rights and interests in this presentation are owned
by the Company.
All currency amounts in this presentation are in NZD unless stated otherwise.

---

Annual Report 2026

CONTENTS
PERFORMANCE
FY26 performance ...................04
Letter from the Chairman ....06
Letter from the CEO ...............08
02
10263688
STRATEGY
Our bold new
transformation strategy .........12
Kathmandu
brand performance ....................14
Rip Curl
brand performance ....................18
Oboz
brand performance ...................22
GROUP OVERVIEW
Our company................................28
Global footprint ...........................30
Board of Directors .....................32
Executive team ...........................33
ESG strategy ................................34
FINANCIAL REPORT
Financial statements ...............38
Auditor's report ..........................84
ADDITIONAL DISCLOSURES
Corporate Governance
Statement .....................................90
Company information ..............111
Directory ........................................116
KMD Brands acknowledges Tangata
Whenua, the Indigenous Nations,
First Peoples and Custodians of the
lands and waterways on which our
brand head offices reside in New
Zealand, Australia and the United
States. We pay our respects to their
Elders past and present.
01

PERFORMANCE
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
02 KMD Brands Annual Report 2026
03
03

FY26 performance overview
SALES MIX FY26
By
brand
54%
Rip Curl
38%
Kathmandu
8%
Oboz
KATHMANDU
SALES MIXTOTAL SALES
NZD
$402.3m
ONLINE SALES
NZD
$57.1m
representing 14.3% of
direct-to-consumer sales
OBOZ
SALES MIX
RIP CURL
27%
Wholesale
1%
Licensing / Royalties
11%
Online
61%
Retail
By
channel
By
region
51%
Australia
11%
New Zealand
21%
North
America
11%
Europe
6%
Rest of world
Wholesale 1%
Online 12%
Online 8%
North America 24%
Wholesale 37%
Online 14%
Retail 85%
Wholesale 88%
Retail 52%
AU & NZ 44%
Licensing/ Royalties 3%
Channel
Channel
Channel
International 10%
Rest of World 12%
New Zealand 27%
Canada 7%
Europe 20%
Australia 73%
USA 83%
Region
Region
Region
TOTAL SALES
NZD
$79.5m
TOTAL SALES
NZD
$571.2m
ONLINE SALES
NZD
$9.8m
+11.8% above last year
ONLINE SALES
NZD
$45.5m
representing 13.3% of
direct-to-consumer sales
SALES MIX
1. Statutory results include the impact of IFRS 16 leases. The impacts of IFRS 16, restructuring, software as a service accounting, the notional amortisation of
customer relationships, impairment and onerous contracts have been excluded from Underlying results. Refer to Appendix 1 of the FY26 Results Presentation for a
reconciliation of Statutory to Underlying results.
$1,053.0m
Total sales
$989.0m
Total sales
57.7%
Gross margin
56.5%
Gross margin
-$9.0m
Underlying NPAT Loss
-$28.3m
Underlying NPAT Loss
FY25
Statutory NPAT Loss
Bank facility headroom
-$414 .4m
Statutory NPAT loss
-$93.6m
FY25
c. $235m
$52.8m
FY25
$42.0m
Underlying EBITDA
1
Underlying EBITDA
1
$17.7m
FY25
NET DEBT BALANCE
$48.1m
c. $147m
Bank facility headroom
FY25
FY25
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
05
04 KMD Brands Annual Report 2026

Letter from the Chairman
Philip Bowman
Chairman – appointed May 2026, succeeding David Kirk
Dear Shareholders,
Welcome to the KMD Brands Annual
Report for FY26.
I was appointed Chairman in May 2026 following the
resignation of David Kirk, and during a period of significant
challenge and change for KMD Brands. My priorities have
been straightforward: to strengthen communication with
shareholders; to evaluate options to improve returns for
shareholders; to refresh the Board; to set clear priorities
and to monitor execution against these priorities; and to
support and challenge Management’s disciplined execution
of the Next Level turnaround strategy.
The year in review
With challenging economic and trading conditions, FY26
proved more difficult than forecast. Our global footprint
meant we were impacted by a range of external factors,
with the nature and extent of these challenges varying
across our markets. Geopolitical instability disrupting
supply chains and increasing costs, unseasonably warmer
weather, and weaker consumer confidence provided
significant headwinds. In Australia and New Zealand,
discretionary consumer spending was weak, particularly
in our key markets of New Zealand and latterly in
Australia, resulting in lower customer footfall, greater price
competition, and higher promotional activity.
Against this difficult backdrop, KMD Brands returned to
growth, delivering improved sales and a significant increase
in EBITDA compared with FY25. While Oboz returned
to profitability and Kathmandu regained momentum in
Australia and New Zealand following strategic investments
in product and digital capability, Rip Curl performed below
expectations. In response, Management has made a
number of strategic decisions to reset the brand, including
strengthening digital capability and the introduction of
new product assortments which should support improved
performance in FY27.
The Group also made progress in improving operational
efficiency and positioning the business for long-term
growth. During the year, Management strengthened
foundations by closing a number of loss-making stores,
improving store profitability, reducing complexity and
cost of operations, and investing in digital and product
capabilities. While further work remains, these initiatives are
creating a more focused, efficient and simplified business
as KMD Brands enters FY27.
Strengthening the Group
A key priority for the Board during FY26 was strengthening
the company’s financial position. KMD Brands refinanced
its banking facility ahead of the expiry of the existing
facility and to support this refinancing completed a fully
underwritten equity raising, albeit at a very deep discount
to market. These actions provide a more stable capital
structure to support the ongoing execution of the Next
Level turnaround strategy. However, even after these
steps the balance sheet remains significantly more highly
leveraged than most retail peers.
The equity raising resulted in a significant dilution for
existing shareholders. The Board reflected on this when
assessing the transaction understanding that many
shareholders would find the terms difficult. As a result
the capital raise was structured in a way that existing
shareholders could not only “follow their money” but also
bid for additional new shares to maintain or increase their
percentage equity position.
Given the loss reported for the year the Board has not
declared a final dividend for FY26 and is not intending to
pay one for FY27.
Business review conclusions and outcomes
In May, while Management remained firmly focused on
improving the Group’s performance by implementing the Next
Level turnaround plan, the Board initiated a comprehensive
business review to assess other opportunities to accelerate
the realisation of shareholder value.
The review examined the Group’s portfolio, capital
requirements and a range of potential value-creation
opportunities, with independent financial and legal
advisers appointed to support the process. This review
was comprehensive, with no areas excluded and no
predetermined outcome.
An early decision was to divest the Group's manufacturing
facility in Southeast Asia. The transaction will support a
simpler operating model and enhance financial flexibility
through property proceeds and the release of working
capital. Management also initiated an externally supported
process to assess interest in a divestment of the Ozmosis
chain of multi-brand retail stores. No expressions of interest
provided better value than the counterfactual of continuing
to rationalise the store portfolio to eliminate loss making
outlets and improve the profitability of the remaining stores.
During the review process, the Board has received and
considered a number of expressions of interest from
external parties to purchase brands or the entire company.
After careful analysis and consideration it has determined
that further engagement with a limited number of these
parties is appropriate. Consistent with its responsibilities to
shareholders, the Board will assess whether any proposal
can deliver greater value than the continued execution of the
Group's Next Level strategy. At this time these expressions
of interest are indicative, non-binding and incomplete with no
certainty that any binding proposal or transaction will result.
Against this background management remains focused on
delivering the FY27 plan, improving profitability, generating
free cash flow and reducing leverage. The Board will
continue to support execution of the strategy while carefully
assessing any credible alternative that may deliver superior
shareholder value and will update the market in accordance
with its continuous disclosure obligations.
Governance and leadership
FY26 was also a year of renewal for the Board. On behalf
of the Directors, I would like to thank David Kirk and Zion
Armstrong for their contributions over their time on
the Board.
John Strowger and Ian Morrice joined the Board in
July and August 2026 respectively, strengthening
the Board’s experience and capabilities. John brings
extensive experience in corporate law, capital markets
and governance. Ian brings deep retail, transformation,
and operations experience gained across New Zealand,
Australia, the United Kingdom and the United States.
The Management team also continued to evolve during
FY26, with deeper expertise across consumer brands,
retail operations, finance and business transformation.
Engagement with shareholders increased during
FY26, and since my appointment I have valued these
discussions and the feedback received. Shareholders
have been consistent in their expectations: improved
performance, no surprises, stronger accountability, and
better communication.
Outlook
Global conditions remain uncertain with the ongoing
stalemates between the USA and Iran in the Gulf of
Hormuz, and between Russia and Ukraine. Consumer
confidence remains weak in many markets and has
fallen rapidly in Australia following the May 2026 Federal
Budget. However, our priorities remain to improve
profitability and generate free cash flow in order to
reduce leverage. The Board continually challenges
the Next Level turnaround plan and believes that this
framework will progressively deliver improved results.
Management’s focus in FY27 is on disciplined delivery of
initiatives and improved results. Maximising shareholder
value remains the priority of the Board.
On behalf of the Board, I would like to thank Brent
Scrimshaw for his leadership, energy, enthusiasm, and
relentless dedication. I also extend my thanks to the
wider Leadership team and all employees across KMD
Brands during a very demanding year, with significant and
often painful changes being made across the business.
I would also like to thank my Board colleagues for their
substantial time commitment, ongoing analysis, and input,
as well as their constructive challenge and support of
management throughout the year.
Finally, to you our shareholders, thank you for your
continued support of KMD Brands through these difficult
times. We look forward to updating you on our progress
over the coming year.
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
06 KMD Brands Annual Report 2026
07

Letter from the CEO
Brent Scrimshaw
Group CEO and Managing Director
Dear Shareholders,
FY26 was a year of significant change for KMD Brands.
At our Investor Day in September 2025, we launched ‘Next
Level’, our three-year turnaround strategy to unlock the full
potential of our brands and return the Group to sustainable,
profitable growth.
At the heart of Next Level is a simple belief: great brands
win when they understand their consumer and deliver
distinctive products and experiences that excite and
engage them. That means accelerating product innovation,
using technology and data to improve our decision-making,
and operating with the discipline required to deliver
sustainable profitability.
Twelve months on, we’ve made meaningful progress
against these priorities. We’ve strengthened product
and marketing, invested responsibly in innovation and
technology, simplified the business, and improved
financial performance.
Resetting the foundations
We believe our brands must be built on great product.
Product that is innovative and distinctive, giving
consumers a reason to choose us for our benefits,
not just our price point.
That belief has been at the heart of the most significant
work undertaken in FY26. Across each brand, we
simplified complex product lines and sharpened our
focus on innovation, seasonal flow and storytelling.
At Kathmandu, we reset the innovation pipeline,
grounding the brand in technical outdoor performance,
contemporary design and speed to market. This
included the launch of the XT Series advanced hiking
range, which won two global ISPO innovation awards.
At Rip Curl, we undertook a comprehensive review of
the product portfolio, relocating the global product team
to Torquay and reducing our SKU count by more than
2,000. This allowed us to create a clearer and more
relevant product offering for the Next Gen consumer as
we enter FY27.
At Oboz, we refreshed the product and brand strategy,
increasing emphasis on innovation, strategic collaborations
and adjacent categories such as trail running.
Beyond product, we reviewed the financial performance
of our store fleet, strengthened inventory management,
enhanced digital capability, and undertook targeted resets
across international markets to improve returns and create
a stronger platform for future growth.
Building modern capability was another key priority
with the infusion of selected digital, data, loyalty and
brand leadership from some of the world's leading
consumer brands. We reshaped the organisation,
simplifying global structures with strategic FTE reductions
across the business. These were difficult but necessary
decisions to create a more focused, future-proofed and
efficient organisation.
We also announced the divestment of Rip Curl’s
manufacturing facility in Southeast Asia; reinforcing
our focus on building a brand and product-led business,
strengthening our balance sheet through the release
of working capital and future transaction proceeds, and
providing greater flexibility to accelerate innovation in
core surf.
Next Level: Turning strategy into action
FY26 delivered clear progress across each pillar of the
Next Level strategy.
Our brand and product-led offence recentered our focus
on the consumer. The work undertaken this year has
created stronger product pipelines and a sharper and more
agile approach to exceeding evolving consumer needs.
Our technology team completed a multi-year
implementation of Microsoft Dynamics 365, creating
a common enterprise platform and enhancing insight
across the business. Rip Curl and Oboz successfully
transitioned to Shopify, while Kathmandu launched
Ship From Store capabilities, improving convenience
for customers, fulfilling previously unmet demand
and complementing our omnichannel strategy.
We simplified the business and improved operational
efficiency, delivering $27.5 million of cost savings,
which exceeded our FY26 target of $25 million, whilst
moderating a sharper and more focused investment
with an ROI lens.
We optimised our group retail footprint, closing 17
stores, ensuring we are ahead of target to close 21
stores by September 2027. We also consolidated our
Australian distribution operations into a more efficient,
multi-brand model, through the closure of the Torquay
distribution centre.
Performance: Results matter
The actions taken through Next Level are translating
into improved financial performance: all brands returned
to revenue growth in FY26, with the Australian dollar
strengthening against the New Zealand dollar.
Despite challenging macro conditions, our revenue
increased by 6.5% during FY26, including approximately
$10 million of growth in online sales. Gross margin
also improved by 120 basis points to 57.7%, reflecting
stronger inventory management, improved product
mix and more disciplined marketplace execution.
Kathmandu delivered consistent momentum, with
same-store sales increasing 8.2% during the year as
consumers responded positively to product innovation
and brand initiatives.
Profitability improved significantly. Underlying EBITDA
increased 138% from $17.7 million in FY25 to $42.0 million,
while underlying EBITDA margin improved from 1.8% to
4.0%. Just as importantly, the quality of the business
improved. Inventory level reductions remain a priority,
with more disciplined focus on buying, planning and
inventory management.
The Group reported a statutory loss after income
tax of $414.4 million compared with $93.6 million
in the prior year. The result includes a non-cash
impairment of intangible assets relating to all three
operating segments and restructuring charges.
While we are encouraged by this progress, this is
only the first year of our turnaround. The challenges
we face cannot all be fixed overnight – but they will
be fixed and our job is to continue to do exactly that.
The progress already achieved in FY26 provides
clear proof points that our strategy is working.
FY27: From reset to execution
As we move into FY27, our focus immediately shifts
from resetting the business to the sustained and
relentless execution of our initiatives to create long-term
shareholder value.
We now have a solid platform for future growth.
We expect to see increasing benefits over time
from the product, marketing and capability changes
implemented during FY26 as new product ranges
impact consumers, brand storytelling is reset and we
transform to a more modern and agile brand portfolio.
We will maintain discipline around cost, inventory
and working capital, while continuing to focus on
improving profitability, generating stronger cash flow
and reducing leverage.
We know what is working, what is getting in our way,
what we need to protect, and where we need to change.
A stronger foundation, clear direction
FY26 was a year of action. There is still significant work
ahead, but the progress achieved during FY26 confirms
our path forward. Our brands have deep emotional
consumer ties, our categories remain attractive and the
opportunities in front of us are significant.
Next Level has created a more disciplined business, with
clear priorities and greater alignment across the Group.
As we enter FY27, our focus is on relentless execution,
and continued performance improvement.
Thank you to our shareholders for your continued
support and patience as we execute the turnaround.
Thank you to our Directors for the support, constructive
challenge and counsel over a year of significant
transformation. Finally, I would like to thank our teams
around the world for their ongoing commitment,
resilience and agility.
We enter FY27 with strong foundations, clear direction
and confidence in the rewards ahead.
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
08 KMD Brands Annual Report 2026
09

11
STRATEGY
10 KMD Brands Annual Report 2026
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PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Our bold new transformation strategy
The KMD Brands Next Level
Strategy is a three-year,
Group-wide transformation
plan focused on unlocking
the full potential of our iconic
brand portfolio and delivering
sustainable, profitable growth.
In FY26, the Group and brands aligned under
the following strategic pillars with significant
progress made:
A brand & product-led offence
Reset the Kathmandu brand to focus on product
innovation for the outdoor consumer:
– Launched the XT Series advanced hike range, which won
two global ISPO awards.
–Launched the customisable Trailhead Pack, which won an
ISPO Award and contributed to strong sales growth in
the pack category.
–Expanded the award-winning Feather Flight luggage
range, driving incremental revenue growth while
accelerating sales of the original Feather Flight carry-on.
Reset the Rip Curl brand for the Next Generation consumer:
–Launched the youth-focused Archive range, which
became the brand’s best-selling collection of FY26.
–Launched a second collaboration with Brazilian lifestyle
leader Farm Rio, bringing a more youthful, fashion-
forward expression to the brand.
–Centralised the global product team under one ‘centre
of excellence’ in Torquay, with regional teams restructured
to support this model.
Reset the Oboz brand to focus on the core hike consumer:
–Launched the Katabatic II, further expanding the
Fast Hike category.
–Launched the Katabatic Storm which won a global
ISPO Award.
–Launched the Orbit Vault which sold out in 24 hours and
contributed to a +15% increase in Sawtooth II sales.
Efficient, scalable processes and data-led
intelligence
–Migrated Rip Curl and Oboz to the Shopify
platform, supporting improved performance
across both brands.
–Accelerated rollout of Kathmandu Ship From
Store, to capture additional ecommerce demand.
–Delivered the successful implementation of D365
ERP at Rip Curl, establishing a more integrated
business platform.
–Launched and implemented Dayforce across all
brands and regions, establishing a unified global
HR platform.
–Achieved targeted reduction in Rip Curl’s product
range by removing 2,000+ SKUs, delivering
enhanced operational efficiency.
–Enhanced reporting via business intelligence
tooling, with emphasis on inventory, order and
shipping data visibility to improve trade decisions.
Delivering sustainable profitability
–Grew top-line revenue by +$64.0 million
(including +$9.8m online sales).
–Expanded gross margin by 120bps YOY to 57.7%.
–Grew underlying EBITDA by 138% to $42.0m
from $17.7m .
–Group underlying EBITDA margin now at +4.0%
vs +1.8% in FY25.
–Delivered $27.5 million cost savings – exceeding
FY26 target of $25.0 million.
–Simplified organisational structure, creating a
more efficient operating model.
–Closed 17 stores and significantly improved
profitability of our retail fleets.
–Consolidated Torquay distribution centre into
one multi-brand asset in Truganina.
–Announced divestment of Southeast Asian
manufacturing facility.
–Inventory at a four year low.
Next Level
Strategic Pillars
010203
12 KMD Brands Annual Report 2026
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STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Accelerated product innovation
–Average growth of +9.0% across all product
categories (excluding footwear).
–Delivered gross margin expansion through product
mix changes and full price technical product sell
through, reinforcing growth in premium positioning.
–Increased seasonal, quick-to-market, limited-
edition releases and collaborations.
–Launched the XT Series advanced hike range,
which won two global ISPO awards.
–Launched the customisable Trailhead Pack, which
won an ISPO Award and contributed to strong sales
growth in the pack category.
–Expanded the award-winning Feather Flight
luggage range, driving incremental revenue growth
while accelerating sales of the original Feather
Flight carry-on.
01
Next Level
Strategic priorities
Digitally-led, integrated marketplace
–Delivered +9.6% YOY online sales growth.
–Accelerated growth through performance
marketing, powered by a step-change in content
strategy, customer targeting and product
storytelling.
–Accelerated rollout of Ship From Store, to capture
additional ecommerce demand.
–Enhanced merchandising, inventory optimisation
and fulfilment to improve customer experience
and operational outcomes.
–Reset international operations, moving from
owned model to distributor partnerships.
02
Retail excellence
–Delivered +8.2% same-store sales growth.
–Delivered step-change in store profitability.
–Opened three next-generation flagship stores,
deepening customer engagement through
enhanced product storytelling.
–Optimised retail fleet by closing seven
underperforming stores, strengthening overall
portfolio performance.
03
Fiscal Year 2026 Financial Highlights
$402.3m Total Sales
$16.1m Underlying EBITDA
1
$1.1m Underlying EBIT
1
-$69.2m Statutory EBITDA
-$136.7m Statutory EBIT
Brand performance
Improve the wellbeing of the world through
the outdoors
1. Statutory results include the impact of IFRS 16 leases. The impacts of
IFRS 16, restructuring, software as a service accounting, the notional
amortisation of customer relationships, impairment and onerous
contracts have been excluded from Underlying results. Refer to Appendix
1 of the FY26 Results Presentation for a reconciliation of Statutory to
Underlying results.
14 KMD Brands Annual Report 2026
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STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Innovation for the
next generation
of adventurers
Kathmandu’s XT Series represents a new approach
to outdoor performance, combining technical
innovation, durability and versatility for advanced
hiking and alpine pursuits. The range has gained
international recognition with two products – the Women’s
XT Series Hybrid Octa Fleece Hooded Jacket and
XT Series Pack 40L – named ISPO Award winners.
The ISPO Award is one of the outdoor industry’s most
respected benchmarks, judged by industry experts,
designers and outdoor professionals. Recognition is
based on genuine product performance, design and
sustainability, giving Kathmandu a powerful proof point
with credibility among serious outdoor audiences.
The Women’s Hybrid Octa Fleece was recognised for
its women-specific technical performance, combining
breathable Octa fleece with recycled Cordura stretch
panels, lightweight packability and a design free from
intentionally added PFAS. The XT Series Pack 40L was
praised for its exceptional versatility, combining an ultra-
lightweight Aluula composite construction with high
durability, modular components and innovative repairability.
To launch the range, Kathmandu created a targeted
campaign across specialist outdoor media and
adventure influencers, putting the XT Series through
its paces in real-world conditions. Outdoor experts
tested the gear firsthand, while selected media
and creators joined Kiwi athlete Gemma McCaw
on a hike that showcased the range’s performance,
versatility and durability across demanding terrain.
This immersive approach gave trusted voices within
the outdoor community first-hand experience of
the XT Series and generated authentic content and
storytelling around its technical credentials. The
campaign delivered 68.8 million media impressions and
generated a potential public relations (PR) reach of
14.5 million across Australia and New Zealand, helping
build awareness and credibility for the new range.
XT SERIES
“XT Series is a powerful expression of our
new strategy – bringing Kathmandu’s
outdoor heritage together with leading
technical innovation to create product
that genuinely elevates performance.
It’s about designing smarter, lighter and
more capable gear for people who expect
more from their time outdoors.”
Megan Welch
Chief Executive Officer, Kathmandu
16 KMD Brands Annual Report 2026
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STRATEGY
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ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Reset for next gen connection
–Launched the youth-focused Archive range, which
became the brand’s best-selling collection of FY26.
–Increased online traffic across youth-focused social
media platforms, including TikTok.
–Launched a second collaboration with Brazilian
lifestyle leader Farm Rio, bringing a more youthful,
stylistic expression to the brand.
–Launched a new Stephanie Gilmore collection,
translating the 8x World Champion’s influence into
marketable capsules for the next generation.
–Evolved our athlete strategy to build stronger
relevance with the next generation of team riders.
Next Level
Strategic priorities
Serve the core, embrace the beach
–Delivered stronger like-for-like performance
from beach-segmented stores, with further
expansion planned.
–Expanded product lines to engage beach and
lifestyle customers, broadening the brand’s
relevance while maintaining strong appeal with the
core customer.
–Opened new stores in key beach locations,
including Ibiza, Spain and Lacanau, France.
–Expanded reach beyond the core surf customer
through a broader beach lifestyle positioning
and women-focused store concepts, including
Bondi Women's.
–Expanded distribution into key wholesale
partners, including Dicks in North America.
Digitally-led, global integrated
marketplace
–Delivered double-digit digital sales growth
across ANZ and Asia, with incremental growth
across the Americas.
–Rebuilt Rip Curl’s global digital infrastructure
through the implementation of Shopify, Klaviyo and
PIM, creating a more scalable global ecommerce
foundation.
–Reset the digital operating model to build stronger
internal capability and enable a more agile,
customer-focused approach to digital growth.
–Delivered deeper customer and consumer
insights research, enabling more sophisticated
segmentation and sharper, evidence-based
decision-making across the business.
Brand performance
Fiscal Year 2026 Financial Highlights
$571.2m Total Sales
$34.4m Underlying EBITDA
1
$15.4m Underlying EBIT
1
-$205.2m Statutory EBITDA
-$267.8m Statutory EBIT
Live the search
0102
03
1. Statutory results include the impact of IFRS 16 leases. The impacts of
IFRS 16, restructuring, software as a service accounting, the notional
amortisation of customer relationships, impairment and onerous
contracts have been excluded from Underlying results. Refer to Appendix
1 of the FY26 Results Presentation for a reconciliation of Statutory to
Underlying results.
18 KMD Brands Annual Report 2026
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STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Designing product
for the Next
Generation of core
customers
The Archive Collection brought the best of Rip Curl’s
1990s and Y2K surf heritage back to life, reimagining
iconic denim shapes, heavyweight fleece and vintage
graphics through a contemporary lens. Inspired by
Rip Curl’s 2000s catalogues, the collection brought
script logos, raw graphics, check prints and nostalgic
silhouettes back into rotation, creating a fresh
expression of the brand’s authentic surf heritage.
The collection was developed to connect with the next
generation of Rip Curl customers, who value heritage,
authenticity and the stories behind the brands they wear.
By revisiting distinctive styles from the ’90s and Y2K, Rip
Curl created product that made its heritage relevant to
Next Gen customers, while continuing to invest in the
athletes who represent this audience, including Dane
Henry, Tya Zebrowski, Erin Brooks and Molly Picklum.
Our marketing strategy is evolving alongside the product,
using contemporary creative, social-first storytelling,
culture-led content and the athletes and communities
that resonate with Next Gen audiences to bring Rip
Curl’s heritage to life in a way that feels relevant today.
The success of the Archive Collection has established
a strong platform for Rip Curl to continue building on,
reconnecting authentic brand DNA with a new generation.
The campaign reached over 4 million consumers,
creating strong visibility for the collection across key
audiences and channels. Archive was Rip Curl's best-
selling collection in FY26, highlighting strong consumer
demand and reinforcing the enduring strength of the
brand's heritage as a platform for future growth.
THE ARCHIVE COLLECTION
“Archive brings the best of Rip Curl’s
heritage into a fresh, contemporary
expression for the next generation.
We have leveraged the styles and
attitude that made the brand iconic
and reimagined them in a way that
feels relevant, distinctive and
unmistakably Rip Curl today.”
Ashley Reade
Chief Executive Officer, Rip Curl
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STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
20 KMD Brands Annual Report 2026

Next Level
Strategic priorities
Blaze the trail
Brand performance
More with the core
–Launched the Sawtooth Ascent, which delivered
strong sell-through growth.
–Launched the Orbit Vault, which sold out within
24 hours and contributed to a +15.0% increase in
Sawtooth II sales.
–Launched Sawtooth LT, modernising our core
hike product and providing a lighter option in the
category offering.
–Evolved our ambassador and athlete strategy,
alongside targeted partnerships and publications, to
build stronger relevance, awareness and connectivity
with our core audience.
Fast trail elevation
–Launched the Katabatic II, further expanding the
Fast Hike category.
–The Katabatic LT Low GTX became the first
fast-hiking style to rank among the top five
online sellers.
–Launched the Katabatic Storm which won a global
ISPO Award.
–Introduced Anabatic Wind Evo and Wind Carbon,
expanding our offering with our first dedicated trail
running styles.
–Evolved our ambassador and athlete strategy,
alongside participation in events and community
initiatives, to build stronger relevance and
connection within the trail running community
and engage new audiences.
–Established a partnership with Montana State
University's Neuromuscular Biomechanics
Laboratory to advance research into sports
performance and orthopaedic biomechanics.
Digital leadership, diversified channels
–Launched Shopify and completed the transition
of performance marketing, strengthening customer
acquisition capability.
–Increased online sales by +11.8% YOY in the five
months following the Shopify launch.
–Leveraged collaborations to broaden customer
engagement with the Gorp Girls limited edition
selling out across online and wholesale channels
within 48 hours.
–Delivered wholesale sales growth +2.8% YOY.
–Strengthened our presence with key Amazon
partners, delivering double-digit growth and
increasing brand awareness.
Fiscal Year 2026 Financial Highlights
$79.5m Total Sales
$2.5m Underlying EBITDA
1
$2.0m Underlying EBIT
1
-$34.3m Statutory EBITDA
-$35.4m Statutory EBIT
0102
03
1. Statutory results include the impact of IFRS 16 leases. The impacts of
IFRS 16, restructuring, software as a service accounting, the notional
amortisation of customer relationships, impairment and onerous
contracts have been excluded from Underlying results. Refer to Appendix
1 of the FY26 Results Presentation for a reconciliation of Statutory to
Underlying results.
22 KMD Brands Annual Report 2026
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PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Building brand
relevance through
community and
culture
Oboz’s Gorp Girls collaboration brought together the
outdoor footwear brand and a community of women
redefining what adventure looks like. The partnership
focused on building relevance and connection
with a new generation of core outdoor customers,
combining Oboz’s expertise in durable, adventure-
ready footwear with the Gorp Girls community,
creativity and passion for getting on the trail.
The partnership was supported by a targeted influencer
marketing and PR campaign designed to reach new
audiences, spark meaningful engagement and tell
the story of the collaboration. Through early-seeded
creators, community content, media and social, the
campaign showcased Oboz products in authentic outdoor
environments and positioned the brand within a broader
conversation around accessible, inclusive adventure.
The campaign generated authentic user generated
content, helping extend the collaboration’s reach and
build momentum around the launch. On Instagram, the
campaign reached hundreds of thousands of potential
customers and drove traffic to our online store. Earned
media coverage generated over 1.3 million impressions.
The collaboration also demonstrated strong commercial
demand, selling out across retail and online within 48 hours
of launch, reinforcing the opportunity for Oboz to continue
building relevance through culture and community.
OBOZ X GORP GIRLS
“Our partnership with Gorp Girls shows
how strategic collaborations can broaden
Oboz’s reach and engage new consumers.
The limited edition selling out within 48
hours demonstrates the power of bringing
technical outdoor product to new
audiences in fresh, relevant ways.”
Amy Beck
President Oboz & KMD Brands, North America
25
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
24 KMD Brands Annual Report 2026

27
GROUP
OVERVIEW
26 KMD Brands Annual Report 2026
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PERFORMANCE
STRATEGY
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
GROUP OVERVIEW

Our groupOur brands
KMD Brands is a family of outdoor brands dedicated to designing products for purpose, driven by innovation and
committed to being the best for people and the planet. Our products are specifically crafted for the outdoors and
rigorously tested by experts in real-world conditions. As the parent company, KMD Brands provides vision and
strategic guidance to Kathmandu, Oboz and Rip Curl. By sharing expertise in technology, research and development,
and by leveraging operational excellence in sourcing, supply chain and systems, we deliver the best customer
experience across our brands.
Kathmandu’s journey began in Aotearoa New Zealand 40 years ago.
We’re on a mission to improve the wellbeing of the world by getting more
people outdoors – because nature has a positive transformative effect
on us all. The outdoors makes us happier, more open, free and fun. Our
vision at Kathmandu is to be the world’s most loved outdoor brand.
Born in the legendary Greater Yellowstone Ecosystem, just outside our
front door, the mountains near Bozeman beckon us. This 10-million
acre laboratory is where we test our designs and draw inspiration
for new ideas. It’s where we immerse ourselves in nature’s wonders.
It even inspired our name “Oboz” (Outside + Bozeman = Oboz).
Founded in 1969 in Bells Beach, Australia, Rip Curl is the ultimate surfing
company. For almost 60 years, we have led the surfing market and
become synonymous with surf culture. ‘The Search’ – the relentless
pursuit of the perfect wave – lives in the spirit of everything we do.
Our vision is to be the ultimate surfing company in all that we do.
PURPOSE
INSPIRING PEOPLE TO EXPLORE
AND LOVE THE OUTDOORS.
TO BE THE LEADING FAMILY OF
GLOBAL OUTDOOR BRANDS –
DESIGNED FOR PURPOSE, DRIVEN
BY INNOVATION, BEST FOR PEOPLE
AND PLANET.
VISION
Our Company
28 KMD Brands Annual Report 2026
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STRATEGY
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
GROUP OVERVIEW

Global footprint
SOUTH AMERICATOTAL
Owned stores6
Licensed stores107
Wholesale doors+800
FRANCE
BRAZIL
USA
CANADA
Bozeman
Vancouver
San Clemente
Global Office Locations
São Paulo
Hossegor
AUSTRALASIATOTAL
Owned stores254
Licensed stores20
Wholesale doors+900
ASIATOTAL
Licensed and JV stores72
Wholesale doors+300
EUROPETOTAL
Owned stores32
Licensed stores10
Wholesale doors+1,900
NEW ZEALAND
AUSTRALIA
INDONESIA
THAILAND
Chiang Mai
Bangkok
Bali
Torquay
Christchurch
Melbourne
AFRICA &
MIDDLE EASTTOTAL
Licensed stores37
NORTH AMERICATOTAL
Owned stores26
Licensed stores27
Wholesale doors+3,900
30 KMD Brands Annual Report 2026
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ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Board of DirectorsExecutive team
The Board provides overall strategic oversight of KMD Brands, including adherence to best-practice
governance principles, maintenance of high ethical standards and protection of core values so that the
Group is managed effectively and responsibly. A brief biography of each Board member can be found in the
“Board and Management” section of the company’s investor website. Our FY26 Corporate Governance
Statement, including Director Skills Matrix, is included in the Additional Disclosures section of this Report.
In May 2026, following the announcement that Philip Bowman would succeed David Kirk as Chair of KMD Brands,
the Board commenced a renewal program focused on identifying two non-executive directors whose skills and
experience would strengthen governance, support performance and provide additional optionality for longer-term
Chair succession. Those appointments included John Strowger (announced in June 2026), a former Chapman
Tripp partner with extensive corporate governance experience, including as Chair of Skellerup Holdings and
a director of Sanford, and Ian Morrice (announced in July 2026), former CEO of Metcash and The Warehouse
Group, who brings deep expertise in retail, business transformation, strategic growth and value creation.
Ashley Reade
Chief Executive Officer, Rip Curl
Joined Rip Curl in 2025
Frances Blundell
Chief Legal & ESG Officer
Joined Kathmandu in 2017
Lachlan Farran
Chief Commercial Officer
Re-joined Rip Curl in 2016
Amy Beck
President Oboz & KMD Brands,
North America
Joined Oboz in 2019
Megan Welch
Chief Executive Officer, Kathmandu
Joined Kathmandu in 2023
Carla Webb-Sear
Group Chief Financial Officer
Joined KMD Brands in 2025
Brent Scrimshaw
Group CEO and Managing Director
Joined KMD Brands in 2025
The management team takes care of the day-to-day management and operation of KMD Brands, regularly
reporting to the Board on all aspects of group performance. A brief biography of each member of the
management team can be found in the “Board and Management” section of the company’s investor website.
Michael Ross
Chief Information Officer
Joined KMD Brands in 2024
Jonas Golze
Group Chief Operations Officer
Joined KMD Brands in 2025
Philip Bowman
Chairman – appointed May 2026, succeeding David Kirk
Appointed as a non-executive director
2 October 2017
Abby Foote
Non-Executive Director
Appointed 15 October 2021
Brent Scrimshaw
Group CEO and Managing Director
Appointed 2 October 2017
Andrea Martens
Non-Executive Director
Appointed 1 August 2019 
John Strowger
Non-Executive Director
Appointed 1 July 2026
Ian Morrice
Non-Executive Director
Appointed 20 August 2026
32 KMD Brands Annual Report 2026
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ADDITIONAL DISCLOSURES
FINANCIAL REPORT

ESG strategy
We acknowledge the impact of our business and accept our responsibility to advance the United Nations
Sustainable Development Goals (SDGs). We consider the SDGs in our strategy and our reporting, which
underpins all our business activities. The goals where we have the most impact are shown below:
The KMD Brands vision drives our ESG strategy which is focused around three key areas:
Communities, Climate and Circularity. Together, these focus areas support us to act responsibly,
transparently, and with purpose. The Group will publish an update on its ESG progress in our FY26
Impact Report, which will be released in November 2026.
SDG 8
Promote sustained,
inclusive and
sustainable
economic growth,
full and productive
employment and
decent work for all.
SDG 10
Reduce inequality
within and among
countries.
SDG 13
Take urgent action
to combat climate
change and its
impacts.
SDG 12
Ensure sustainable
consumption and
production patterns.
KMD Brands has successfully
recertified as a B Corporation
under B Lab’s enhanced
certification standards,
reaffirming our commitment
to operating as a business that
creates positive environmental
and social impact alongside
financial performance. KMD
Brands is also part of the first
cohort of companies globally to
adopt the Version 2 standards
for B Corp Certification.
Recertification is an important milestone because
it provides independent verification of how we
manage our impacts, govern our business and
deliver value for our stakeholders. The process
requires transparency, accountability and
rigorous assessment across a broad range of
environmental, social and governance criteria.
This achievement reflects the collective effort of
teams across KMD Brands and all of our brands,
each of which continues to advance its own
sustainability priorities while contributing to our
shared commitments. While we are proud to have
achieved recertification, it is part of our ongoing
journey of continuous improvement and raising
the standard of our performance over time.
COMMUNITIES
Positively impact the wellbeing of people and
places touched by our brands
C L I M AT E
Transition to a low carbon future
CIRCULARITY
Eliminate the linear take-make-waste
approach to business
34 KMD Brands Annual Report 2026
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ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Contents
Directors’ Approval of Consolidated
Financial Statements ...................................................................38
Consolidated Statement of Comprehensive Income ........39
Consolidated Statement of Changes in Equity...................40
Consolidated Balance Sheet ......................................................41
Consolidated Statement of Cash Flows ................................42
Notes to the Consolidated Financial Statements ..............44
Section 1: Basis of Preparation ...........................................44
Section 2: Results for the Year ...........................................47
Section 3: Operating Assets and Liabilities ...................55
Section 4: Capital Structure and Financing Costs .......68
Section 5: Group Structure ..................................................76
Section 6: Other Notes ..........................................................79
Auditor's Report ............................................................................84
In this section...
The consolidated financial statements have been presented in a style which attempts to make
them less complex and more relevant to shareholders. We have grouped the note disclosures into
six sections: ‘Basis of Preparation’, ‘Results for the Year’, ‘Operating Assets and Liabilities’, ‘Capital
Structure and Financing Costs’, ‘Group Structure’ and ‘Other Notes’. Each section sets out the
accounting policies applied in producing the relevant notes. The purpose of this format is to provide
readers with a clearer understanding of what drives financial performance of the Group. The aim of
the text boxes is to provide commentary on each section or note, in plain English.
37
FINANCIAL
REPORT
36 KMD Brands Annual Report 2026
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STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT

Directors’ Approval of Consolidated
Financial Statements
For the Year Ended 31 July 2026
Authorisation for Issue
The Board of Directors authorised the issue of these Consolidated Financial Statements on 23 September 2026.
Approval by Directors
The Directors present the Consolidated Financial Statements of KMD Brands Limited for the year ended 31 July 2026
on pages 39 to 83.
23 September 2026
Philip Bowman Date
23 September 2026
Brent Scrimshaw Date
For and on behalf of the Board of Directors
Consolidated Statement of
Comprehensive Income
For the Year Ended 31 July 2026
Section
2026
NZ$’000
2025
NZ$’000
Sales2.21,053,019989,015
Cost of sales(4 4 5,8 41)(42 9,75 5 )
Gross profit 6 0 7, 17 8559,260
Other income2.21,9383,169
Selling and marketing expenses(280,617 )(283,884)
Administration and general expenses(189,473)(182,636)
Impairment expense3.2-3.3(4 62,6 58)(4 5,36 3)
(930,810)(508,714)
Earnings before interest, tax, depreciation, and amortisation(323,632)50,546
Depreciation and amortisation 3.2-3.4(131,501)(131,077)
Earnings before interest and tax(455,133)(80,531)
Finance income1,3732,7 72
Finance expenses(31,199)(26,901)
Finance costs (net)4.1.1(29,826)(24,129)
(Loss) before income tax(484,959)(104,660)
Income tax benefit 2.370,58511,081
(Loss) after income tax(414,374)(93,579)
(Loss) for the year attributable to:
Shareholders of the Company(415,959)(95,058)
Non-controlling interest1,5851,479
Other comprehensive income that may be reclassified subsequently to (loss):
Movement in cash flow hedge reserve 4.3.2( 7,6 6 7 )2,116
Movement in foreign currency translation reserve4.3.233,8011,022
Other comprehensive income for the year, net of tax26,1343,138
Total comprehensive profit / (loss) for the year(388,240)(90,441)
Total comprehensive profit / (loss) for the year attributable to:
Shareholders of the Company(390,403)(91,875)
Non-controlling interest2,1631,434
Restated
Basic earnings per share2.4( 74 9.2c p s)(194.2cps)
Diluted earnings per share2.4( 74 9.2c p s)(194.2cps)
Weighted average basic ordinary shares outstanding (‘000)2.455,52348,954
Weighted average diluted ordinary shares outstanding (‘000)2.45 6,72 14 9,70 3
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
38 KMD Brands Annual Report 2026
39

Consolidated Statement of
Changes in Equity
For the Year Ended 31 July 2026
Consolidated Balance Sheet
As at 31 July 2026
Share
capital
NZ$’000
Cash flow
hedge
reserve
NZ$’000
Foreign
currency
translation
reserve
NZ$’000
Share-
based
payments
reserve
NZ$’000
Other
reserves
NZ$’000
Retained
earnings
NZ$’000
Non-
controlling
interest
NZ$’000
To t a l
equity
NZ$’000
Balance as at 31 July 2024629,3831,68423,019824(47 )125,0675,748785,678
Profit / (loss) after tax-----(95,058)1,479(93,579)
Other comprehensive income-2,1161,067---(4 5)3,138
Dividends paid--------
Issue of share capital--------
Share based payment expense---391---391
Deferred tax on share-based
payment transactions
---45---45
Lapsed share options---(154)-154--
Amounts transferred to initial carrying
amount of hedged items 4.3.2
-(4,4 5 0)-----(4,4 5 0)
Dividends paid to
non-controlling interest
------(1,281)(1,281)
Balance as at 31 July 2025629,383(650)24,0861,106(47 )30,1635,901689,942
Profit / (loss) after tax-----(415,959)1,585(414,374)
Other comprehensive income-( 7,6 6 7 )33,223---57826,134
Dividends paid--------
Issue of share capital61,935------61,935
Share based payment expense---361---361
Deferred tax on share-based
payment transactions
---(26)---(26)
Lapsed share options---(416)-416--
Amounts transferred to initial carrying
amount of hedged items 4.3.2
-6,76 1-----6,76 1
Dividends paid to
non-controlling interest
------(1,339)(1,339)
Balance as at 31 July 2026691,318(1,556)57, 3 0 91,025(47 )(385,380)6,725369,394
Section2026
NZ$’000
2025
NZ$’000
ASSETS
Current assets
Cash and cash equivalents3.1.240,97334,284
Trade and other receivables3.1.396,60092,291
Inventories3.1.1251,501254,039
Derivative financial instruments4.21,2982,217
Current tax assets4,3363,594
Asset classified as held for sale3.5.16,057-
Other current assets3.1.51,1971,263
Total current assets401,9623 8 7,6 8 8
Non-current assets
Trade and other receivables3.1.32,4382,614
Property, plant and equipment3.260,65875,254
Intangible assets3.31 9 7, 4 0 5626,099
Derivative financial instruments4.238123
Deferred tax assets2.325,71715,849
Right-of-use assets3.4.1233,955243,025
Total non-current assets520,211962,964
Total assets922,1731,350,652
LIABILITIES
Current liabilities
Trade and other payables3.1.61 51 ,70 3188,670
Derivative financial instruments4.22,4622,225
Current tax liabilities518588
Lease liabilities3.4.285,62188,157
Total current liabilities240,304279,640
Non-current liabilities
Trade and other payables3.1.623,25223,488
Interest bearing liabilities4.189,02587,085
Non-current derivative financial instruments4.28-
Deferred tax liabilities2.310,5 4770,864
Lease liabilities3.4.2189,643199,633
Total non-current liabilities312,475381,070
Total liabilities552,779660,710
Net assets369,394689,942
EQUITY
Contributed equity - ordinary shares4.3.1691,318629,383
Reserves4.3.25 6,73124,495
Retained earnings(385,380)30,163
Non-controlling interest6,7255,901
Total equity369,394689,942
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
40 KMD Brands Annual Report 2026
41

Consolidated Statement of Cash Flows
For the Year Ended 31 July 2026
Section2026
NZ$’000
2025
NZ$’000
Cash flows from operating activities
Cash was provided from:
Receipts from customers1,040,911986,964
Government grants received142
Interest received1,073948
Income tax received-8,279
1,041,998996,193
Cash was applied to:
Payments to suppliers and employees942,095832,950
Income tax paid4,8259,990
Interest paid28,3242 7,0 9 1
975,244870,031
Net cash inflow from operating activities66,754126,162
Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment402120
402120
Cash was applied to:
Purchase of property, plant and equipment3.212,15913,132
Purchase of intangible assets3.38,15411,446
20,31324,578
Net cash (outflow) from investing activities(19,911)(24,458)
Cash flows from financing activities
Cash was provided from:
Proceeds from share issue65,600-
Proceeds from borrowings277,725260,332
343,325260,332
Cash was applied to:
Dividends paid1,3381,281
Repayment of borrowings283,010266,909
Repayment of lease liabilities98,44493,284
Payments in relation to share issue3,665-
386,457361,474
Net cash (outflow) from financing activities(43,132)(101,142)
Net increase / (decrease) in cash and cash equivalents held3,711562
Opening cash and cash equivalents 34,28433,948
Effect of foreign exchange differences2,978(226)
Closing cash and cash equivalents3.1.240,97334,284
Reconciliation of net loss after taxation with cash inflow from operating activities
Section2026
NZ$’000
2025
NZ$’000
(Loss) after taxation(414,374)(93,579)
Movement in working capital:
Decrease / (increase) in trade and other receivables1,270(3,506)
Decrease in inventories20,8 4711,359
Decrease in other current assets125764
(Decrease) / increase in trade and other payables(50,545)28,509
(Decrease) / increase in current tax liabilities(1,063)5,490
(29,366)42,616
Add non-cash items:
Depreciation of property, plant and equipment3.224,25523,346
Amortisation of intangibles3.314,27416,027
Depreciation of right-of-use assets3.4.192,97291 ,70 4
Impairment of assets3.2, 3.3, 3.4.1462,97260,812
Foreign currency translation of working capital balances(10,649)2,977
(Decrease) in deferred taxation( 74,3 4 8)(18,282)
Employee share-based remuneration6.3361391
Loss on sale or disposal of property, plant and equipment and intangibles3.2, 3.3657150
510,49417 7, 1 2 5
Cash inflow from operating activities66,754126,162
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
42 KMD Brands Annual Report 2026
43

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Section 1: Basis of Preparation
IN THIS SECTION...
This section sets out the Group’s accounting policies that relate to the consolidated financial
statements as a whole. Where an accounting policy is specific to one note, the policy is described in the
note to which it relates.
1.1 General information
KMD Brands Limited (the Company) and its subsidiaries
(together the Group) is a designer, marketer, retailer and
wholesaler of apparel, footwear and equipment for surfing
and the outdoors. It operates in New Zealand, Australia,
North America, Europe, Southeast Asia, Brazil and Japan.
The Company is a limited liability company incorporated
and domiciled in New Zealand. KMD Brands Limited is a
company registered under the Companies Act 1993 and
is a Financial Markets Authority reporting entity under
Part 7 of the Financial Markets Conduct Act 2013. The
address of its registered office is 223 Tuam Street, Central
Christchurch, Christchurch.
The Company is listed on the New Zealand Exchange
(NZX) and Australian Securities Exchange (ASX).
The consolidated financial statements of the Group have
been prepared in accordance with the requirements of Part
7 of the Financial Markets Conduct Act 2013 and the NZX
Listing Rules.
These audited consolidated financial statements have
been approved for issue by the Board of Directors on 23
September 2026.
1.2 Summary of material accounting policies
These consolidated financial statements have been
prepared in accordance with Generally Accepted
Accounting Practice (GAAP). They comply with the Tier
1 New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable
Financial Reporting Standards, as appropriate for for-profit
entities. The consolidated financial statements also comply
with International Financial Reporting Standards (IFRS).
The consolidated financial statements are presented in
New Zealand dollars, which is the Group’s presentation
currency.
1.2.1 Basis of preparation
The principal accounting policies adopted in the
preparation of the consolidated financial statements are set
out below. These policies have been consistently applied to
all periods presented, unless otherwise stated.
Basis of consolidation
The consolidated financial statements reported are for
the consolidated Group, which is the economic entity
comprising KMD Brands Limited and its subsidiaries.
The Group is designated as a for-profit entity for financial
reporting purposes.
Subsidiaries are consolidated from the date on which
control is obtained to the date on which control is lost.
Non-controlling interests are measured at their
proportionate share of the acquiree’s identified net assets
at the acquisition date. Changes in the Group’s interests
in a subsidiary that do not result in a loss of control are
accounted for as equity transactions.
In preparing the consolidated financial statements, all
material intra-group transactions, balances and unrealised
gains and losses on transactions between Group
companies are eliminated. When necessary, amounts
reported by subsidiaries have been adjusted to conform to
the Group’s accounting policies.
Historical cost convention
The consolidated financial statements have been prepared
under the historical cost convention, as modified by the
revaluation of certain assets as identified in the specific
accounting policies provided below.
Critical accounting estimates
The Group makes estimates and assumptions concerning
the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The
estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are
discussed below.
Estimates and judgements are continually evaluated
and are based on historical experience as adjusted for
current market conditions and other factors, including
expectations of future events that are believed to be
reasonable under the circumstances.
Further explanation as to estimates and assumptions
made by the Group can be found in the following notes to
the consolidated financial statements:
Area of estimationSection
Goodwill and brand
– assumptions underlying recoverable value
3.3
Foreign currency translation
The results and financial position of all the Group entities
(none of which have the currency of a hyper-inflationary
economy) that have a functional currency different
from the presentation currency are translated into the
presentation currency as follows:
• Assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of that
balance sheet;
• Income and expenses for each statement of
comprehensive income are translated at average
exchange rates (unless this average is not a
reasonable approximation of the cumulative effect of
the rates prevailing on the transaction dates, in which
case income and expenses are translated at the rate
on the dates of the transactions); and
• All resulting exchange differences are recognised in
other comprehensive income.
On consolidation, exchange differences arising from the
translation of the net investment in foreign operations,
and of borrowings and other currency instruments
designated as hedges of such investments, are taken to
shareholders’ equity.
Changes in accounting policies
Details about changes in accounting policies applied
during the period are included in the following notes to
the consolidated financial statements:
Section
New standards and interpretations first applied
in the period
6.8
Use of non-GAAP disclosures
At times non-GAAP disclosures have been used in the
consolidated financial statements. These disclosures
have been included as they are key measurement
criteria on which the Group and operating segments are
reviewed by the Group Chief Executive Officer, Group
Executive Management team and the Board of Directors.
The following non-GAAP measures are relevant to the
understanding of the Group's financial performance:
• Earnings before interest, tax, depreciation and
amortisation (EBITDA) represent earnings before
income taxes excluding interest income, interest
expense, depreciation, and amortisation, as reported
in the consolidated financial statements.
• Earnings before interest and tax (EBIT) represents
EBITDA less depreciation and amortisation.
• Net debt represents cash and cash equivalents less
interest-bearing liabilities. Net debt does not include
lease liabilities.
Non-GAAP financial information does not have a
standardised meaning prescribed by GAAP and
therefore may not be comparable to similar financial
information presented by other entities. The non-GAAP
information within the consolidated financial statements
is subject to audit.
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
44 KMD Brands Annual Report 2026
45

1.3 Climate change risk
The Group's operations may be impacted by future climate
change. These impacts may be physical (such as severe
or unusual weather patterns and events) or transitional
(such as changes to government regulation, customer
preferences and supplier requirements).
The Group regularly assesses its operating environment to
monitor its exposure to risk, including climate-related risk.
The Group completed climate-related risk assessment
and scenario modelling in a prior year. In respect of the
year ended 31 July 2026, the Group undertook an internal
review of climate-related risks and opportunities and
concluded that no matters had arisen that would change
its previous assessment that there are no significant
impacts requiring specific disclosure in these consolidated
financial statements.
Specific consideration has been given in these
consolidated financial statements to insurance proceeds
received in relation to climate-related insurance claims
(note 2.2), the impact of future climate change on the
useful lives of the Group's property, plant and equipment
(note 3.2), the inclusion of expected renewals in the lease
term for right-of-use assets (note 3.4), and sustainability-
linked loans (note 4.1). Identified climate-related risks and
opportunities, including both physical and transitional
impacts, have been considered as part of the relevant
accounting judgements and estimates.
Section 2: Results for the Year
IN THIS SECTION...
This section focuses on the results and performance of the Group. On the following pages you will
find disclosures explaining the Group’s results for the year, segmental information, taxation and
earnings per share.
2.1 Segment information
An operating segment is a component of an entity that
engages in business activities that earns revenue and
incurs expenses and where the chief decision maker
reviews the operating results on a regular basis and
makes decisions on resource allocation.
The Group has three operating segments, representing
three brands owned by the Group and a Corporate
segment. These segments have been determined based
on the reports reviewed by the Group Chief Executive
Officer and Group Executive Management team.
Rip Curl – designer, manufacturer, wholesaler and retailer
of surfing equipment and apparel.
Kathmandu – designer, retailer, and wholesaler of
apparel, footwear, and equipment for outdoor travel
and adventure.
Oboz – designer, wholesaler and online retailer of
outdoor footwear.
The Corporate segment represents group costs,
holding companies and consolidation eliminations and
constitutes other business activities that do not fall within
the brand segments.
The default basis of allocating shared costs is
percentage of revenue with other bases being used
where appropriate.
31 July 2026
Rip Curl
NZ$’000
Kathmandu
NZ$’000
Oboz
NZ$’000
Corporate
NZ$’000
To t a l
NZ$’000
Total segment sales571,201402,27781,427-1,054,905
Sales to internal customers--(1,886)-(1,886)
Sales to external customers571,201402,27779,541-1,053,019
Impairment expense278,0031 47, 4 8 236,736437462,658
EBITDA(205,174)(69,217)(34,267)(14,974)(323,632)
Depreciation and amortisation(62,611)( 6 7, 5 2 7 )(1,169)(194)(131,501)
EBIT( 26 7,78 5 )(136,74 4)(35,436)(15,168)(455,133)
Total segment assets453,427403,96439,82724,955922,173
Total assets include:
Non-current assets220,1162 9 7,6 7 21,3541,069520,211
Additions to non-current assets48,90256,4563,128457108,943
Total segment liabilities235,498202,72520,17394,383552,779
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
46 KMD Brands Annual Report 2026
47

31 July 2025
Rip Curl
NZ$’000
Kathmandu
NZ$’000
Oboz
NZ$’000
Corporate
NZ$’000
To t a l
NZ$’000
Total segment sales550,444362,10779,997-992,548
Sales to internal customers-(167)(3,366)-(3,533)
Sales to external customers550,444361,94076,631-989,015
Impairment expense--(4 5,36 3)-(4 5,36 3)
EBITDA65,11648,961(48,821)(1 4,710)50,546
Depreciation and amortisation(60,892)(68,297)(1 ,71 1 )(177 )(131,077)
EBIT4,224(19,336)(50,532)(14,887)(80,531)
Total segment assets715,272542,21876,88716,2751,350,652
Total assets include:
Non-current assets4 8 7, 9 7 7435,83035,4533,70 4962,964
Additions to non-current assets5 3,76 453,3562,08412,807122,011
Total segment liabilities298,299225,96634,420102,025660,710
Sales to external customers by region
2026
NZ$’000
2025
NZ$’000
Australia532,517501,518
New Zealand120,558108,442
North America219,213207,085
Europe113,966104,804
Rest of world6 6,76 567,166
1,053,019989,015
Sales to external customers by channel
2026
NZ$’000
2025
NZ$’000
Retail639,693599,440
Online112,487102,663
Wholesale285,446272,977
Licensing13,2131 2,74 0
Other2,1801,195
1,053,019989,015
Non-current assets by region
2026
NZ$’000
2025
NZ$’000
Australia372,676661,888
New Zealand5 7, 2 9 41 5 7,0 9 6
North America46,29384,132
Europe30,22335,304
Rest of world1 3,72524,544
520,211962,964
2.2 Profit / (loss) before tax
Revenue recognition
The Group recognises revenue from the sale of
apparel, footwear and equipment for surfing and the
outdoors, and brand licencing arrangements. Revenue
comprises the fair value of the consideration received
or receivable for the sale of goods and brand licences,
excluding goods and services tax and discounts,
and after eliminating sales within the Group.
Retail sales
For sales of goods to retail customers, revenue is
recognised when control of the goods has been
transferred to the customer, at the point the
customer purchases the goods at a retail outlet.
Payment of the transaction price is due immediately
at the point the customer purchases the goods.
Online sales
For online sales, revenue is recognised when control
of the goods has been transferred to the customer,
at the point the goods are delivered to the customer.
Delivery occurs when the goods have been shipped to
the customer’s specific location. When the customer
initially purchases the goods online, the transaction price
received by the Group is recognised as a contract liability
until the goods have been delivered to the customer.
Wholesale sales
For sales to the wholesale market, revenue is recognised
when control of the goods has been transferred to the
wholesaler, being when the goods have been shipped
to the wholesaler’s specific location (delivery). Following
delivery, the wholesaler has full discretion over the
manner of distribution and price to sell the goods, has
the primary responsibility when on-selling the goods
and bears the risks of obsolescence and loss in relation
to the goods. A receivable is recognised by the Group
when the goods are delivered to the wholesaler as
this represents the point in time at which the right
to consideration becomes unconditional, as only the
passage of time is required before payment is due.
Sales returns
Under the Group’s standard contract terms, customers
have a right of return, typically within 30 days. At the
point of sale, a returns liability and a corresponding
adjustment to revenue is recognised for those products
expected to be returned. The Group uses its accumulated
historical experience to estimate the number of returns
on a portfolio level using the expected value method.
Given the consistent level of returns over previous years,
it is considered highly unlikely that a significant reversal
in the cumulative revenue recognised will occur.
Royalty revenue
Royalty revenue from brand license arrangements is
related to the provision of a right to access the license.
Revenue from sales-based royalties is recognised when
subsequent sales occur.
2026
NZ$’000
2025
NZ$’000
Sale of goods1,042,681978,805
Royalty revenue9,3379,326
Commission revenue1,001884
1,053,019989,015
A breakdown of revenue by operating segment, sales
channel and geographical area is provided in note 2.1.
Cost of sales
Cost of sales in the consolidated statement of
comprehensive income represents the cost of inventory
recognised as an expense during the period.
Other income
2026
NZ$’000
2025
NZ$’000
Government grants 14 2
Insurance proceeds 220 1,892
Other 1 ,70 4 1,275
1,9383,169
Government grants are not recognised until there is
reasonable assurance that the grants will be received and
that the Group will comply with the conditions attached
to them. Government grants that compensate the Group
for expenses incurred are recognised as revenue in
the consolidated statement of comprehensive income
on a systematic basis in the same period in which the
expenses are recognised. In both periods Government
grants relate to grants to support sustainability initiatives.
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
48 KMD Brands Annual Report 2026
49

In the current period insurance proceeds relate to claims
for the Onsmooth factory flood in Thailand.
Employee entitlements
2026
NZ$’000
2025
NZ$’000
Wages, salaries, and other short-
term benefits
232,840 221,069
Post-employment benefits 16,033 14,580
Employee share-based
remuneration
361 391
249,234236,040
Lease expense
The Group is a lessee. Refer to note 3.4 for further details
around the Group’s leases and lease accounting policies.
Lease amounts recognised in the consolidated statement
of comprehensive income:
2026
NZ$’000
2025
NZ$’000
Short-term lease expense4,0704,894
Low-value lease expense 1,1091,149
Variable lease expense 1,132 866
Rent concessions and abatements(980)(830)
Lease outgoings 21,394 20,685
Depreciation right-of-use asset
(3.4.1)
92,97291 ,70 4
Interest expense related to lease
liabilities (3.4.2)
13,91713,585
133,614132,053
Some of the property leases in which the Group is the
lessee contain variable lease payment terms that are
linked to sales generated from the leased stores. Variable
payment terms are used to link rental payments to store
cash flows and reduce fixed cost.
Overall, the variable lease expense constitutes up to 0.8%
(2025: 0.7%) of the Group's entire lease expense. The
variable lease expense depends on sales and consequently
on the overall economic development over the next few
years. Considering the development of sales expected over
the next three years, variable rent expenses are expected
to continue to present a similar proportion of store sales in
future years.
The total cash outflow for leases amounts to $137,182,000
(2025: $130,345,000).
Administration and general expenses
Administration and general expenses represent the
overhead costs of managing and supporting the operations
of the Group and therefore are not directly attributable to
specific revenue-generating activities.
2.3 Taxation
Accounting policies
Current and deferred income tax
The tax expense for the period comprises current and
deferred tax. Tax is recognised in the consolidated
statement of comprehensive income, except to the extent
that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is
recognised in other comprehensive income or directly in
equity, respectively.
The current income tax benefit / expense is calculated
based on the tax laws enacted or substantively enacted
at the balance sheet date in the countries where the
Company and the Company’s subsidiaries operate and
generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to
situations in which applicable tax regulations are subject
to interpretation and establishes provisions where
appropriate based on amounts expected to be paid to the
tax authorities.
Deferred income tax is provided in full, using the liability
method, on temporary differences arising between tax
bases of assets and liabilities and their carrying amounts
in the consolidated financial statements. However, the
deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction
other than a business combination, that at the time of the
transaction, affects neither accounting nor taxable profit
or loss. Deferred income tax liability is not recognised if
it arises from the initial recognition of goodwill. Deferred
income tax is determined using tax rates (and laws)
that have been enacted or substantially enacted by the
balance sheet date and are expected to apply when
the related deferred income tax asset is realised, or the
deferred income tax liability is settled.
Deferred income tax assets are recognised to the
extent that it is probable that future taxable profit will
be available against which the temporary differences
can be utilised.
2026
NZ$’000
2025
NZ$’000
Current income tax expense4,0437, 2 3 1
Deferred income tax (benefit)( 74,628)(18,312)
Income tax (benefit) reported in
the consolidated statement of
comprehensive income
(70,585)(11,081)
Deferred income tax is provided on temporary
differences arising on investments in subsidiaries,
except where the timing of the reversal of the temporary
difference is controlled by the Group and it is probable
that the temporary difference will not reverse in the
foreseeable future.
Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the
deferred income tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the
same taxable entity or different taxable entities where
there is an intention to settle the balances on a net basis.
Goods and Services Tax (GST)
The consolidated statement of comprehensive income
and the consolidated statement of cash flows have been
prepared so that all components are stated exclusive
of GST. All items in the consolidated balance sheet are
stated net of GST, except for receivables and payables,
which include GST invoiced.
Taxation – Consolidated statement of
comprehensive income
The total taxation benefit / expense in the consolidated
statement of comprehensive income is analysed
as follows:
PERFORMANCE
STRATEGY
GROUP OVERVIEW
ADDITIONAL DISCLOSURES
FINANCIAL REPORT
50 KMD Brands Annual Report 2026
51