• Group sales expected to be $1,040m to $1,044m in FY26
• Kathmandu sales improve YoY, Rip Curl sales impacted
• Net debt expected to be $63m to $66m at end of July 2026
• Decision to divest Southeast Asian manufacturing facility

KMD Brands Limited provides an update on its trading performance for the 2026 financial year, with group sales expected to be in the range of $1,040 million to $1,044 million, up 5% at the midpoint on FY25. Direct-to-consumer same-store sales, including online, for Kathmandu were up 4.8% year-on-year, while Rip Curl sales declined by 2.8%. Group underlying EBITDA is expected to be in the range of $38 million to $41 million, up 123% at the midpoint on FY25. Kathmandu sales continue to improve, driven by strong performance in rainwear, fleece, and base layer categories, while Rip Curl sales are impacted by subdued consumer sentiment and competitor promotional activity. The Group's net debt is expected to be in the range of approximately $63 million to $66 million at the end of July 2026, elevated year-on-year due to changes in payment timing, investment in working capital, and the weakening of the NZ dollar. The Group plans to divest its Southeast Asian manufacturing facility, with a phased production wind down over the next 12 months, expected to deliver net property proceeds of $5 million to $7 million and unlock working capital of approximately $6 million.

FY26 sales: $1,040m to $1,044m; EBITDA: $38m to $41m; Net debt: $63m to $66m

KMD Brands expects to complete its business review by the announcement of the FY26 Annual Results on 23 September 2026.