Kathmandu Holdings has revealed the impact the Victorian, New South Wales and newly announced Western Australia lockdowns are likely to have on its trading results.
Currently, the Group has 40 stores closed in NSW for a minimum of two weeks and 26 stores closed in WA for a minimum of four days.
This follows the Victorian lockdown, which saw 62 stores close for two weeks in early June.
Due to these closures, the Group expects total sales for FY21 to be below original expectations at approximately $930 million, and underlying EBITDA is estimated at c.$120 million.
The impact of the New South Wales and recent Victorian lockdowns and associated movement restrictions is estimated to be c.$13 million on EBITDA.
Kathmandu Holdings Group CEO Michael Daly said while COVID continues to disrupt trading, the business' brands are still tracking well.
"COVID-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu.
"Excluding these impacts, Kathmandu had a solid start to the winter season, and Rip Curl sales momentum continues.
"Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our Group benefits from a diversified mix of channel and geographies," he said.
According to the business, Kathmandu was trading broadly in line with pre-COVID-19 levels before Australian lockdowns began to impact the key winter trading period.
Rip Curl and Oboz have continued their strong performance, with the wholesale channel proving strong for both brands.
Kathmandu Holdings reports that FY22 wholesale orders for Rip Curl continue to show double-digit growth over FY19, while Oboz's wholesale orders for FY22 are significantly above both FY19 and FY20.
Additionally, Rip Curl's direct to consumer sales in Europe and North America have remained above pre-COVID levels.