KMD Brands (KMD) Trading update summary

Trading performance

• FY26 group sales projected at $1,040m–$1,044m, a 5% increase at midpoint over FY25.

• Underlying EBITDA for FY26 expected between $38m and $41m, up 123% at midpoint on FY25.

• Kathmandu same store sales up 4.8% YoY; Rip Curl down 2.8% YoY for the first 24 weeks of H2.

• Oboz sales returned to YoY growth in Q4 FY26, driven by strong online and new product launches.

• Net debt forecasted at $63m–$66m by July 2026, elevated due to payment timing, inventory investment, and NZD weakness.

Business review and strategic actions

• Decision to divest Southeast Asian manufacturing facility, with phased wind down over 12 months.

• Expected net property proceeds of $5m–$7m and $6m in working capital to be unlocked.

• Business review progressing well, with completion targeted for FY26 Annual Results announcement in September 2026.

• Group will remain compliant with all bank covenants under the new facility at July 2026.