KMD Brands Limited, the owner of Oboz, Rip Curl and Kathmandu, said the new tariffs announced last week by the Trump administration have created “significant uncertainty” for footwear and apparel companies.
“The new U.S. tariffs are another headwind in an already challenging consumer environment in the U.S.,” Group CEO and Managing Director Brent Scrimshaw said in a statement. “We are evaluating all strategic options, including pricing, cost mitigation and inventory investment, to safeguard the long-term value of our brands and protect our stakeholders.”
The company has significant operations in the U.S., with Rip Curl’s U.S. sales accounting for 12% of total company sales and Oboz’s U.S. sales accounting for 7%.
Both Rip Curl and Oboz’s products are manufactured throughout Asia.
“Until we have more clarity on changes to consumer demand in the U.S., the Group will redirect some U.S. inventory to other key global markets, or hold inventory with existing international third-party logistic partners,” KMD Brands said in a statement. “Both Rip Curl and Oboz have significant seasonal inventory in the U.S. which was landed prior to the recent tariff increases.”
KMD did not estimate how much the new tariffs could impact the company’s financial results for the current fiscal year, saying it was too soon to forecast given the fluidity of the situation.
