KMD said it continued to feel the effects of weaker consumer sentiment, with sales down 11.2 percent. Photo: RNZ / Nate McKinnon
Outdoor goods retailer KMD Brands posted a steep full-year loss amid a sharp downturn in the wider sector and a one-off write-down in the value of its US footwear brand Oboz.
Key numbers for the 12 months ended September compared with a year ago:
- Net loss $48.3m vs $36.6m
- Sales $979.4m vs $1.1b
- Underlying earnings $50m vs $105.9m
- Gross margin 58.9 % vs 59.1%
- Oboz impairment $40.3m
- No dividend vs 3 cents per share
KMD, which also owned Kathmandu and Rip Curl, said it continued to feel the effects of weaker consumer sentiment, with sales down 11.2 percent from last year's record result.
Its bottom line was also affected by a $40.3 million write-down in the value of Oboz, as it took a conservative view of US wholesale markets.
Leaving aside one-offs, its underlying earnings fell more than 50 percent.
Rip Curl sales were down 7.3 percent from a year ago, Kathmandu fell 14.5 percent and Oboz was down 20 percent.
"Following Kathmandu's disappointing first half result, sales trends relative to FY23 improved through the third and fourth quarters, with enhanced in-store and online execution and the launch of new products," group chief executive Michael Daly said.
He said Rip Curl and Oboz saw direct-to-consumer sales outperforming wholesale channels.
KMD's margins were stable despite the difficult sales period.
"Operating costs reduced year-on-year despite ongoing inflation pressure, and working capital reduced as inventory investments were carefully managed," Daly said.
In a trading update for the first eight weeks of the new financial year, Daly said Kathmandu Australia saw a slight increase in year-on-year sales, but New Zealand sales were down 23 percent.
Daly said the company remained cautious about consumer sentiment going forward.
"Global inflationary pressures are easing, but it will take time to directly impact consumer spending. In this environment, we are focusing on growing our gross margin, and simplifying our business to drive cost efficiency," he said.