Rip Curl Parent KMD Says Annual Sales Expected to Hit NZ$1.1B
Rip Curl parent KMD Brands Ltd. is nearing the end of its fiscal year and it’s looking to be a record one with sales of NZ$1.1 billion ($692.9 million) expected for the group.
The company disclosed the projection for the year ending July 31 in an update Wednesday in New Zealand. It would mark the first time the company-wide business has had sales in excess of NZ$1 billion, despite what it said has been a more challenging fiscal fourth quarter “with increased cost-of-living pressures softening consumer sentiment.”
That softening demand, mixed with a warmer-than-usual Australian winter has negatively impacted sales and store traffic, KMD said.
Rip Curl is KMD’s largest brand by sales, with the portfolio also including Kathmandu and Oboz. KMD said Kathmandu is lapping a record winter season, with sales so far off to a “slower start” for the current winter.
“With three weeks of trade still to come, we remain focused on delivering our key Kathmandu winter and Rip Curl Northern Hemisphere summer results while continuing to moderate our cost base for the year ahead,” Group CEO and Managing Director Michael Daly said in a statement. “We’re looking forward to delivering over $1 billion in sales at year-end – a first for KMD Brands.”
The company also said it expects EBITDA for the fiscal year to come in at NZ$105 million ($66.1 million) to NZ$110 million ($69.3 million).
KMD outlined a major growth strategy for Rip Curl to investors in May that included a big push to expand the brand’s brick-and-mortar footprint over the next three years. Rip Curl is estimating it can open new doors at a rate of about 10 each year.
A bigger boost in investment into the Rip Curl wholesale channel includes more brand buildouts, while the company also outlined product expansion in its women’s, kids, and winter wear.
Meanwhile, new Rip Curl leadership is expected to help grow the North American business. The company is currently in search of a new leader for the region after former North America President Dylan Slater joined Firewire as CEO.
Kari Hamanaka can be reached at [email protected].
