KMD Brands (KMD) H2 2026 earnings summary

Executive summary

• Group sales rose 6.5% year-over-year to NZD 1.053 billion, with all three brands achieving growth and underlying EBITDA up 138% to NZD 42 million.

• The first year of the 'Next Level' transformation delivered significant progress in sales, margin, and cost savings, with major technology and operating model initiatives completed.

• Statutory NPAT loss was NZD 414.4 million, driven by a NZD 462.7 million non-cash impairment across all brands.

• Store optimization, technology investments, and cost savings of NZD 27.5 million exceeded targets.

• Strategic priorities included product innovation, digital growth, and responsible financial management.

Financial highlights

• Gross margin improved by 120 bps to 57.7%, aided by product mix, sourcing, and NZD 8 million in tariff refunds.

• Underlying EBITDA increased to NZD 42 million (4.0% margin), up from NZD 17.7 million (1.8%) in FY25.

• Statutory net loss after tax was NZD 414.4 million, driven by the impairment charge.

• Online sales grew 9.6% group-wide, with eCommerce acceleration post-Shopify launch.

• Inventory reduced to NZD 240.3 million, with improved stock turns and lower obsolescence provision.

Outlook and guidance

• FY27 sales guidance: NZD 1.055–1.075 billion; EBITDA: NZD 52–55 million; CapEx: NZD 15–16 million.

• Gross margin expansion expected from FX hedging and strategic price increases.

• Additional NZD 10 million in annualized cost savings underway to offset inflation.

• Kathmandu sales momentum expected to continue; Rip Curl to benefit from new product launches; Ozmosis remediation plan in place.

• Guidance subject to no adverse changes in economic conditions or exchange rates.