KMD Brands Reports NZD 414 Million Statutory Loss

KMD Brands reported a statutory loss of NZD 414.4 million for the 2026 fiscal year, driven primarily by a NZD 462.7 million non-cash impairment charge on intangible assets. The loss caused company shares to decline 1.49% to $1.99. Chief Financial Officer Carla Webb-Sear clarified that the charge does not affect the company's cash flow, banking covenants, or day-to-day operations.

Operationally, the company saw growth across its portfolio. Total sales rose 6.5% to NZD 1.053 billion, while underlying EBITDA more than doubled to NZD 42.0 million. Kathmandu delivered the strongest performance with an 11.1% sales increase to NZD 402.3 million, while Rip Curl remained the largest brand with NZD 571.2 million in sales. Oboz returned to profitability with sales of NZD 79.5 million.

As part of its transformation strategy, the company closed 17 underperforming stores and delivered NZD 27.5 million in cost reductions, exceeding its initial targets. KMD Brands is currently conducting a strategic review and engaging with external parties regarding indicative transaction proposals. For the 2027 fiscal year, the company projects sales between NZD 1,055 million and 1,075 million and an expected EBITDA of NZD 52-55 million.