KMD Brands, the parent company of Rip Curl, Oboz, and Kathmandu, recorded a 7.9% year-over-year increase in total group sales for the five months ending Dec. 31, with all three brands reporting revenue increases and growth through the holiday period.
“We are pleased with the group’s early progress in the execution of its Next Level transformation strategy, in particular trading over the critical Black Friday and Christmas periods,” said KMD CEO Brett Scrimshaw in a statement.
Rip Curl Reports Healthy Sales Increase
Rip Curl reported a 5.6% year-over-year increase in total sales for the August to December period, according to a news release. Sales grew 4.4% through November and December.
Rip Curl same-store sales, including online, increased 1.7% in the 23 weeks ended Jan. 4, and the brand logged strong same-store sales results for North America.
Oboz Sales Rebound
After reporting a 1.3% sales decline for the three months ended October, sales increased 21% through November and December, with sales up 4.5% over the five months ended December.
Kathmandu: Gains in DTC
Kathmandu’s total sales increased 12.9% over the five-month period, with sales up 13.9% in the first quarter ended October and an increase of 12.1% in November and December.
DTC was especially strong for the brand over the Black Friday and Christmas periods, according to the release. Kathmandu’s same-store sales, including online, increased 12.7% over the 23 weeks ended Jan. 4, showing momentum in Australia and New Zealand.
Wholesale and Gross Margins
Group wholesale sales for the five months of fiscal 2026 year-to-date increased 9.4% above last year. Forward wholesale order books remain stable and slightly above last year.
Group gross margin year-to-date is 56.7%, a decline of approximately 100 basis points year-over-year due to the elevated level of promotional activity in the marketplace and continued focus by all brands to optimize mix and sell through aged inventory.
KMD expects first half EBITDA to be in the range of $8 million to $11 million, compared to $3.9 million for the same period last year.
KMD extended its existing debt facility term to April 2027.
Since taking over as KMD CEO in March, Scrimshaw has appointed new leadership at Rip Curl and reduced the workforce.
“Whilst we are still at the early stages of our transformation, we are encouraged by the improved performance of Kathmandu, with an adjusted flow of fresh innovation planned in the second half which we believe will strengthen our ability to expand gross margin over time,” Scrimshaw said. “We continue to focus on optimizing the balance between sales and gross margin while actively managing our inventory investment.”
KMD Brands will report first-half results on March 25.
