Kathmandu owner KMD Brands crunches share registry to 72 million to ‘rationalise’ stock

The troubled company behind outdoor clothing brand Kathmandu will crunch its share registry at the same time it adds a commercial lawyer to its board.

KMD Brands on Wednesday flagged plans to undertake a one-for-25 share consolidation to rationalise the number of ordinary shares currently on issue.

This will result in the total number of shares being reduced from about 1.8 billion to just under 72 million.

So far this year, KMD shares have fallen 58 per cent to just over 6¢. US surfwear company Stokehouse Unlimited is also circling KMD to buy its Rip Curl brand.

KMD — also behind hiking boots label Oboz — on Wednesday also announced John Strowger would join the company as a non-executive director from next month. He replaces former KMD chair David Kirk on the board.

KMD said Mr Strowger was a leading New Zealand commercial lawyer, specialising in corporate and securities law, as well as mergers and acquisitions.

He was a partner at NZ law firm Chapman Tripp for nearly three decades and continues with the firm as a consultant, the company said.

KMD chair Philip Bowman said Mr Strowger brings deep governance experience, sound commercial judgement and a strong understanding of listed company responsibilities.

“John’s combination of legal, governance and advisory experience complements the existing skills, experience and diversity of our directors, supporting the generation of value for shareholders through a combination of the recently announced business review and management’s focus on disciplined execution of our Next Level strategy,” Mr Bowman said.

Earlier this year, Mr Bowman launched a review into KMD, which could lead into a potential break-up of the business.

KMD’s announcements on Wednesday came the same day Baby Bunting lowered its profit guidance for the 2026 financial year, sending shares plunging 10 per cent to $1.48 at 11.30am AEST.

Australia’s biggest specialist baby goods retailer now expects pro forma net profit of $16 million to $17m — compared with its previous guidance of $17.5m to $19.5m — following softer-than-expected fourth quarter.

“The three (Reserve Bank’s) cash rate rises in the second half, together with higher fuel prices, weighed on consumer spending and added to our distribution costs,” Baby Bunting boss Mark Teperson said.

“Sales across our non-refurbished store network did not meet plan over the last seven weeks, driven by softness in prams and car safety categories relative to expectations, which lowered average transaction values.”