KMD Brands sales up double-digits on pre-Covid levels
KMD Brands announced on Wednesday revenues for the first quarter surged 62%, on the back of the removal of Australasian lockdowns and a return to more normal trading during the three months ending November 6.
The owner of Kathmandu and Rip Curl said first-quarter revenues also grew 18% on FY20, which was pre-Covid, and a more accurate portrayal of company revenue growth for the three months.
Direct-to-consumer same store sales growth for the 14 full weeks saw Kathmandu up 107.2%, and Rip Curl gain 29.7%. The New Zealand-headquartered company said its Oboz brand achieved record first-quarter wholesale and online sales, with supply no longer a constraint.
“KMD Brands achieved a positive result in Q1 FY23, with strong sales growth across all brands compared to both prior year and pre-Covid levels," said group CEO and managing director, Michael Daly.
"Pleasingly, gross margin and profitability are holding up well, with group underlying operating profit for the first quarter of FY23 improving by nearly $30 million year-on-year.
With current trading for its three brands remaining strong, KMD said it is "cautiously optimistic" for the future, flagging the potential of high inflation and rising interest rates with the potential to hinder consumer sentiment in key markets.
"As always, the first half year results remain dependent on the key Black Friday and Christmas retail trading periods still to come," added Daly.
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