Rip Curl’s parent company Kathmandu Holdings warned Tuesday that COVID lockdowns in Australia and New Zealand would hurt Q1 results.
Same store sales (stores plus online) for both Rip Curl and Kathmandu were “significantly impacted” by the lockdowns in the 13 weeks ended Oct. 31.
Rip Curl’s overall same store sales fell 9.4% during the period. If the stores that were shut due to lockdowns were taken out of the equation, same store sales would have increased 1.6%.
Kathmandu’s same store sales fell 17.6% overall. Without the closed stores included, same store sales would have risen 16.3%.
Because of the closures, Q1 operating profit is expected to be NZ $35 million lower than the same period last year.
The good news is business has bounced back in areas that have reopened. In the NSW and Victoria markets, Rip Curl same store sales are up 27%.
Wholesale order books for Rip Curl and hiking footwear brand Oboz are “significantly” above pre-pandemic levels, the company said.
In North America, the company is dealing with impacts from supply chain challenges. Oboz has also been hurt by the closure of factories in Vietnam.
Demand for Rip Curl wetsuits continues to outstrip supply.
“COVID-19 continued to be a major disruption in the first quarter, with Australasian retail stores significantly impacted by lockdowns and supply chain disruption impacting our ability to fulfill strong wholesale demand,” Kathmandu CEO Michael Daly said in a statement. “Despite the challenging trading conditions to date, we are ready to capitalize on growth opportunities as COVID restrictions ease. The group continues to invest in the long-term expansion of our global house of outdoor brands.”
