KMD Brands has reported improved trading performance for FY26, with group sales expected to reach between $1.04 billion and $1.044 billion and underlying EBITDA forecast to more than double to between $38 million and $41 million.
The retailer said Kathmandu continued to strengthen throughout the second half of the financial year, with direct-to-consumer same-store sales rising 4.8 per cent on a constant currency basis. Growth was driven by strong demand for rainwear, fleece and base layers, although unseasonably warm weather on Australia’s east coast softened sales in the insulation category during the winter sale period. Trading in New Zealand continued to outperform Australia.
Rip Curl’s same-store sales declined 2.8 per cent as subdued consumer sentiment and increased promotional activity weighed on performance, while Oboz returned to year-on-year growth in the fourth quarter, supported by online sales and new product launches.
As part of its ongoing business review, KMD Brands also announced plans to divest its Southeast Asian manufacturing facility, with production to be phased out over the next 12 months. The sale is expected to generate between $5 million and $7 million in net property proceeds and unlock around $6 million in working capital, strengthening the group’s balance sheet.
KMD Brands said its broader business review remains on track and is expected to conclude ahead of the release of its FY26 annual results on 23 September.
