Sales at Rip Curl, Oboz, and Kathmandu are improving after a successful holiday season and increased DTC sales, according to an update from parent company KMD Brands.
- Overall sales at KMD increased by 1.7% year-over-year in November and December 2024 after decreasing by 6.7% year-over-year from August to October 2024.
- Sales at Rip Curl in November and December 2024 increased by 2.2% year-over-year, according to a news release. Sales declined by 6.7% year-over-year at the brand from August to October 2024.
- Sales at Oboz declined by 5.1% through the holiday period – an improvement from an 8.6% decline from August to October 2024.
- Sales at Kathmandu increased by 1.7% year-over-year in November and December and declined by 5.8% from August to October 2024.
From August to December, KMD said that:
- Rip Curl’s sales declined by 2.9%.
- Oboz’s sales declined by 7.7%.
- Kathmandu’s sales were nearly flat, declining by 0.4%.
- Overall sales decreased by 2.5% through the period.
Online Sales Grow 18.4%
KMD attributed the improved results to higher DTC sales for all three brands. Wholesale sales are taking longer to rebound, and have continued to decline year-over-year.
It added that:
- Rip Curl’s global DTC sales increased by 2.4% compared to last year from August to December, with strong sales growth during the holiday season and boosted by more stores operating year-over-year.
- Oboz’s online DTC sales grew year-over-year with Black Friday and Christmas promotions, which KMD said reinforces growth opportunities for the brand.
- Kathmandu DTC sales from August to December were similar to the same period in 2023, with positive performance in New Zealand.
Group online sales increased by 18.4% from August to December 2024 compared to the same period the previous year. All three brands achieved double digit digital sales growth, and online sales growth will continue to be a priority for the company.
Gross margins at Rip Curl and Kathmandu “remain resilient,” according to the update, despite promotional intensity. Oboz’s inventory clearance has led to lower gross margins in the back half of 2024.
Wholesale Caution Continues
Wholesale continues to be challenging.
According to the update:
- Rip Curl wholesale sales decreased 13.4% from August to December 2024 compared to the previous year.
- Oboz wholesale sales decreased by 12.1% through the last five months of 2024.
Buyers are cautious when it comes to pre-season commitments, but in-season buying from key accounts could lead to improved wholesale trends leading into 2025, concluded the update.