Rip Curl parent company Kathmandu issued a warning to the stock market today that new COVID lockdowns in Australia will cause Kathmandu to miss its revenue target this fiscal year.
Approximately 40 of the group’s stores in New South Wales will be closed for at least two weeks, with 26 more in Western Australia closing for at least four days.
In addition, 62 company stores were closed in Victoria for two weeks at the beginning of the month.
The closures will especially hurt Kathmandu, which is an outdoor retailer that specializes in winter activities and is in the midst of its key selling period.
The COVID restrictions are expected to negatively impact EBITDA by $13 million, Kathmandu said. In addition, the company’s annual sales will not hit the previous target set for Fiscal ’21, which ends July 31.
Before the new COVID outbreaks, the company’s Kathmandu business had kicked off the winter season with sales in line with pre-COVID levels.
The momentum for Rip Curl, which has been on a roll, continues with sales especially strong in North America and Europe, the company said. Rip Curl DTC remains “well above” pre-COVID levels. Wholesale is also posting good results, with orders for FY ’22 up double digits over FY ’19.
The company’s outdoor footwear brand Oboz is showing positive results in the second half of this fiscal year, and wholesale orders for FY ’22 have come in “significantly” above prior year levels.
