Rip Curl Sales Down 5.7% in First Four Months of KMD’s Fiscal Year
Rip Curl used promotions during the Black Friday selling period to navigate and hedge against the current slowdown at wholesale and among consumers.
However, it wasn’t enough to stave off the broader decline in Rip Curl sales so far in parent KMD Brands Ltd.’s current fiscal year.
Rip Curl sales, for the four-month period ended Nov. 30, are down 5.7%. The period represents the first four months of KMD’s 2024 fiscal year.
Rip Curl’s challenges are coming from the wholesale business, with KMD reporting “good results” in the direct-to-consumer channel for the surf brand.
“Black Friday promotions for Rip Curl and Oboz delivered strong sales as these brands continued to deliver good results in direct-to-consumer channels, while navigating short-term weakness in wholesale channels as retailers reduce inventory in uncertain trading conditions,” KMD CEO and Managing Director Michael Daly said in a statement released Wednesday in New Zealand.
Sales at KMD’s other portfolio brands, Kathmandu and Oboz, are also down in the first four months of the fiscal year.
Kathmandu sales dropped 21.6% on account of sluggish sales in rainwear and insulation, with Daly saying improving the brand’s sales “remains our priority.”
Oboz sales, meanwhile, are down 18.2%, which the company also attributed to the wholesale slowdown.
“We remain focused on optimizing gross margin, controlling operating costs, and reducing working capital for all of our brands,” Daly said.
KMD companywide sales have now slipped 12.5% in the first four months of its fiscal year compared to a year ago. Meanwhile, KMD EBITDA for the same period is down roughly NZ$16 million ($10 million) from the prior year comparable period.
