KMD.ASX: KMD Brands Trading and Business Review Update

KMD Brands Trading and Business Review Update

Stock	KMD Brands Ltd (KMD.ASX)
Release Time	27 May 2026, 7:34 a.m.
Price Sensitive	Yes

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KMD Brands Q3 Trading and Business Review Update

Key Points

Q3 FY26 total sales up 6.6% YOY
Kathmandu same-store sales up 12.6% YOY
Group gross margin improved by 258 bps YOY
Ongoing business review to enhance shareholder value
Anticipated FY26 cost savings of $27.5m

Full Summary

KMD Brands Limited (NZX/ASX: KMD) has reported continued performance improvement in Q3 FY26, with total sales up 6.6% year-on-year (YOY) and gross margin improving by 258 basis points (bps) YOY. Kathmandu's same-store sales increased by 12.6% YOY, driven by strong product innovation and online sales growth. Rip Curl's sales remained resilient, and the North American business is expected to deliver EBITDA positive results by the end of FY26. The company is also undertaking a business review to assess opportunities for enhancing shareholder value, including examining the capital structure and portfolio configuration.

Guidance

FY26 cost savings of $27.5m, operating expenses expected to be flat YOY

Outlook

The company remains alert to geopolitical tensions and expects a challenging consumer environment. The group anticipates gross margin benefit from net tariff receivables of approximately US$5 million in North America.