Kathmandu (KMD) sees earnings fall after COVID hit

Gross sales on the operator of out of doors clothes retailer Kathmandu hit report ranges in 2022 and traders will see an upsized dividend, however the impacts of the COVID pandemic despatched the corporate’s earnings sliding.

KMD Manufacturers, which operates the Kathmandu, Rip Curl and Oboz manufacturers, grew group gross sales by 6.2 per cent for the yr to $NZ979.8 million ($868 million), which was a report outcome for the group.

Gross sales at Kathmandu and Rip Curl bounced again strongly within the second half as prospects returned to journey and outside actions.Credit score:Kathmandu

Nonetheless, the retailer’s internet revenue after tax (NPAT) got here in 33.7 per cent decrease than 2021, hitting $NZ36.8 million.

Chief govt Michael Daly stated the consequences of COVID-19 have been now largely behind the corporate, with journey bouncing again and border restrictions softening internationally.

Regardless of this, Kathmandu and Rip Curl suffered a $NZ35 million hit through the yr as lockdowns hit gross sales.

Footwear model Oboz additionally suffered all year long after the closure of factories in Vietnam all through 2021 impacted the corporate’s capability to satisfy buyer demand.

Gross sales at Kathmandu and Rip Curl bounced again strongly within the second half as prospects returned to journey and outside actions. Kathmandu noticed its strongest-ever gross sales within the fourth quarter. Daly stated momentum had continued within the first weeks of the brand new yr as customers stored spending.

Kathmandu chief executive Michael Daly with the company’s new brand - the business is now called KMD Brands.

Kathmandu chief govt Michael Daly with the corporate’s new model – the enterprise is now known as KMD Manufacturers.

“The momentum from the robust ultimate quarter of FY22 has continued. August gross sales for the Group have been up 44.2% on August 2021, and 10.3% above pre-COVID August 2019,” he stated.

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