Kathmandu (NZX:KMD): Which brands do the Company own?

Highlights

• Kathmandu Holdings is a travel-related clothing and equipment provider that owns 3 brands -Kathmandu, Rip Curl and Oboz.
• The Group reported strong sales across Rip Curl and Oboz brands, but COVID-19-related travel curbs affected the Group’s financials.
• KMD expects its H1 FY22 profit to be lower than H1 FY21.

Kathmandu Holdings Limited (NZX:KMD; ASX:KMD) is a clothing and equipment provider for travel and adventure. The Company has 3 iconic brands namely Kathmandu, Rip Curl and Oboz.

Rip Curl aims to be among the top 3 surf brands in North America/Europe. Kathmandu is a leading outdoor brand in Australasia, while Oboz is a fast-growing North American hike footwear brand. KMD’s brands have a global reach. KMD has more than 3,000 wholesale doors in North America, over 2,000 in Europe, nearly 1,000 each in Asia and South America, 23 in Africa and the Middle East, and over 1,000 in Australia and New Zealand.

Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- EODHD/Others

The Group delivered strong sales and positioned the business for sustained growth in FY21 amid the COVID-19 pandemic. While the underlying NPAT witnessed a 110% rise to $66.3 million, underlying EBITDA saw an increase of 35.9% to $113.3 million in the period.

FY21 Performance

Kathmandu’s results were bolstered by strong sales from both Rip Curl and Oboz.

During the Northern Hemisphere summer season, Rip Curl exceeded pre-COVID-19 sales in key regions of North America and Europe. The rise in sales was majorly due to increased involvement seen in surfing and the brand's technical product emphasis and high customer engagement. Rip Curl's wholesale order books are now substantially higher than they were before the COVID-19 pandemic.

While COVID-19-related travel restrictions have had an impact on Kathmandu, the brand saw an early impetus after its relaunch in May 2021. The revamped version is expected to expand on strong brand foundations and position it to become a truly global brand.

Oboz continued with robust performance. The brand’s sales growth showed its product innovation approach and customer diversification.

The Group paid a final dividend of 3cps, taking the total FY21 dividend to 5cps.

On 13 October, KMD ended the trading session at $1.56, up 1.3% from its previous close.

Outlook

The Group’s brands are well positioned to capitalise on growing participation in beach, outdoor and surfing activities even after the COVID-19 impact. Kathmandu plans to continue investing in building its global brands through brand advertising, sustainability and sponsorship initiatives.

KMD has plans to introduce Rip Curl loyalty, relaunch Kathmandu Summit Club and leverage Kathmandu online platform augmentations.

The Group expects its H1 FY22 profit to be lower than that of H1 FY21. It Is pursuing a refreshed Group strategy that will help KMD in letting the Company to focus on things that matter as the Group progresses unto FY22.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)