Photo: RNZ / Nate McKinnon
Outdoor goods retailer KMD Brands has posted another first-half loss of more than $20 million, with sales up just half a percent.
The company's retail brands Kathmandu and Rip Curl had stronger sales, but wholesale shoe brand Oboz saw a drop in sales amid cautious wholesale customers.
Key numbers for the six months ended January compared with a year ago:
- Net loss $20.7m vs $6.9m net loss
- Sales revenue $470.9m vs $468.6m
- Underlying profit $52.7m vs $15.1m
- Gross margin 58.5% vs 58.8%
- No interim dividend
"Direct-to-consumer sales have improved for all three of our brands, while the wholesale market is taking longer to recover," outgoing chief executive Michael Daly said.
"Global monetary policy settings have been easing, but the return of consumer confidence will take time."
He said the company was seeing short-term gross margin pressure for all brands, but the focus was on growing margins in the medium-term as markets improve.
"We are monitoring the impact of geopolitical uncertainty on consumer confidence and supply chains."
Incoming chief executive Brent Scrimshaw said the outlook was positive.
"We continue to focus on delivering positive sales growth, improving profitability, maximising
cash flows, and reducing inventory," Scrimshaw said.
"We believe that with our portfolio of iconic global outdoor brands and leadership in sustainability, we remain a unique investment proposition and well-placed for the future."
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