KMD Brands Slumps on Earnings Forecast Cut, Lags Behind ASX200 Peers

June 19, 2025 01:21 PM AEST | By Team Kalkine Media

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KMD Brands Slumps on Earnings Forecast Cut, Lags Behind ASX200 Peers — Image source: shutterstock

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Highlights

KMD Brands issues earnings warning

Group sales fall over 10-month period

Shares dip further amid tough retail outlook

Shares of KMD Brands (ASX:KMD) faced renewed pressure following a downbeat forecast on its full-year earnings for FY25. The retailer, which owns popular outdoor label Kathmandu, revealed a decline in group sales and projected a significant drop in underlying earnings, leading to a negative reaction from the market.

Sharp Earnings Downgrade Hits Sentiment

The company advised that its FY25 underlying earnings are expected to more than halve compared to the previous financial year. This profit guidance triggered an early selloff in the stock on Thursday morning, with shares slipping 3.8% to 25.5 cents by 11:05am AEST. Over the last 12 months, the share price has seen a total decline of 32%, reflecting ongoing challenges in the retail environment.

KMD Brands cited weaker consumer spending and softening demand across key markets as major headwinds impacting its revenue and profit margins. This comes amid a broader cautionary outlook from retailers globally, many of whom are navigating inflationary pressures, higher input costs, and shifting consumer behaviours.

ASX200 Peers Show Greater Resilience

While KMD Brands (KMD) struggles, several ASX200 stocks have shown comparatively better performance in 2025, underpinned by more resilient sectors such as resources and financials.

The company’s update highlights how discretionary spending trends are playing a key role in shaping earnings results across the retail sector. KMD Brands’ sales update covered a 10-month period, pointing to a consistent decline in top-line performance, which has now started to severely impact earnings outlooks.

Market Outlook and Competitive Landscape

The current downturn in KMD Brands’ share price is reflective of a broader concern over retail stocks with international exposure and dependency on seasonal buying trends. The outdoor apparel segment has been particularly exposed to variable demand, with retailers needing to adapt rapidly to changing consumer patterns and macroeconomic challenges.

As investors monitor further updates from the group, attention will likely turn to the company’s FY25 strategy, inventory management, and cost-optimisation efforts to mitigate further margin pressure.

With ASX200 benchmarks setting a more stable tone in 2025, companies like KMD Brands may need stronger operational resilience to maintain investor confidence in a turbulent retail sector.

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