Kathmandu owner KMD Brands crosses fingers for Black Friday, Christmas sales boost

The owner of the Kathmandu and Rip Curl brands will rely on the all-important Black Friday and Christmas trading periods to revive slumping sales across the group.

In a trading update ahead of its annual general meeting on Tuesday, KMD Brands revealed declining sales across Kathmandu, Rip Curl and footwear label Oboz.

Sales for surfwear brand Rip Curl declined 6.7 per cent in the three months to October, while Kathmandu fell 2.7 per cent. But the declines were most pronounced in Oboz, with sales down 8.6 per cent over the period.

Group sales for the first quarter were down 5.8 per cent.

Despite the brands’ poor performance, KMD said its direct-to-consumer sales channel had improved for Rip Curl and Kathmandu since its last trading update in September.

Outgoing KMD Brands chief executive Michael Daly said it remained cautious on consumer sentiment, given the challenging global macroeconomic environment.

“The group’s first half results are dependent on the key Black Friday and Christmas retail trading periods to come,” he said.

Mr Daly — who announced his departure last month — said brand awareness for Kathmandu has improved and it expected the refreshed authentic outdoor brand advertising to have a positive impact.

“Kathmandu has increased product newness and innovation for the spring summer season, resulting in a positive consumer response in key categories,” he said.

“Kathmandu will continue to leverage its elevated brand positioning, sustainability credentials, and innovative new products moving forward.”

He added the group was encouraged that Rip Curl’s direct-to-consumer results were outperforming the wholesale channel.