KMD Brands gross margin is up on last year, amid rising costs. Photo: RNZ / Nate McKinnon
Retail group KMD Brands says first quarter sales are better than expected for Rip Curl and Kathmandu brands with group margins up on last year.
"The group's first half results are dependent on the key Black Friday and Christmas retail trading
periods to come," KMD chief executive Michael Daly said.
"We remain cautious on consumer sentiment, given the challenging global macroeconomic environment."
Rip Curl's direct to consumer sales outperformed its wholesale channel for the three months ended October, though total sales were down 3.4 percent on the year earlier.
"We remain optimistic that wholesale results will start to improve as the wholesale customer inventory reduction cycle ends," Daly said.
Kathmandu's retail sales also improved, with Australia's first quarter up 4.3 percent on last year, while New Zealand's were down more than 15 percent.
Overall, Kathmandu's total sales were down 2.7 percent on last year, but gross profit was up 3.6 percent.
"Refreshed authentic outdoor brand advertising has outperformed previous campaigns in Kathmandu's largest market Australia," he said.
"Kathmandu has increased product newness and innovation for the spring summer season, resulting in a positive consumer response in key categories. Kathmandu will continue to leverage its elevated brand positioning, sustainability credentials, and innovative new products moving forward."
Oboz wholesale sales were down 8.5 percent.
Daly said the group's gross margin was up on last year, amid rising costs.
"For FY25, we remain focused on returning to sales growth, improving profitability, and reducing inventory."
