Daily Roundup

KMD.ASX SKC.ASX

KMD Brands is charting a steadier course for FY26, though the performance across its brands tells two very different stories. The outdoor and adventure retailer expects group sales to land between $1,040 million and $1,044 million, representing solid 5% growth at the midpoint compared to the prior year. More impressively, underlying EBITDA is forecast to more than double, climbing to $38 million to $41 million—a 123% jump from FY25.

The divergence between KMD's two main brands is worth noting. Kathmandu is firing on all cylinders, with direct-to-consumer same-store sales up 4.8% year-on-year, buoyed by strong demand for rainwear, fleece, and base layer products. Rip Curl, meanwhile, is struggling against headwinds of muted consumer sentiment and aggressive competitor discounting, with sales down 2.8%.

On the balance sheet side, net debt is expected to rise to $63 million to $66 million by the end of July 2026, reflecting timing changes in payments, working capital investments, and currency headwinds from a weaker New Zealand dollar. To shore up its finances, KMD plans to divest its Southeast Asian manufacturing facility over the next 12 months, which should unlock around $5 million to $7 million in property proceeds and free up approximately $6 million in working capital. The company will provide a full update when it announces its FY26 results on September 23.

Meanwhile, SkyCity Entertainment is tightening its belt through asset sales. The hospitality and gaming operator has entered into a non-binding heads of agreement to sell The Grand Hotel, marking the latest move in its asset monetisation programme. The cash raised will be channeled toward debt repayment and bolstering financial flexibility as the company navigates current market conditions.

The transaction still needs to clear several hurdles—binding documentation must be finalized following due diligence, and approval from New Zealand's Overseas Investment Office is required. SkyCity is targeting cash settlement in late 2026, though the financial terms remain under wraps for now.