KMD Brands says it expects significantly lower sales in the fiscal first half, reflecting weak consumer sentiment.
The group forecasts sales to decline 14.5 per cent year over year to $469 million amid lower expected sales across all three brands.
The company forecasts Rip Curl and Kathmandu’s sales to fall 9.2 per cent and 21.5 per cent, respectively. It also estimates a 20 per cent decrease in Oboz’s sales.
Meanwhile, the group’s gross margin is anticipated to remain resilient at 58.8 per cent.
“Rip Curl and Oboz are recycling record sales last financial year and while revenues from the direct-to-consumer channel for these brands are showing single-digit declines, the wholesale channel has been more challenging as wholesale accounts reduce inventory holdings,” said KMD Brands CEO and MD Michael Daly.
“Kathmandu has experienced softer trading results since June 2023. A combination of weaker consumer sentiment, the warmest winter on record in Australia and the brand’s resilience on winter-weight products has resulted in a disappointing first half.”
The company is optimistic that the Rip Curl and Oboz wholesale channels will improve next year.
In addition, it is looking forward to a better performance for Kathmandu in the second half of next year as the company will launch new products, quick-to-market programmes, increased visual merchandising, more personalisation through Out There Rewards, and an expanded third-party brand strategy.
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