KMD Brands is reportedly on track to deliver a record NZ$1.1 billion in full-year sales despite softening consumer sentiment in the fourth quarter.
This will be the first time its sales have exceeded $1 billion, with the group claiming strong sales growth across all brands in the first three quarters of the financial year.
KMD’s gross margin is expected to be in line with last year, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) projected to be in the range of $105-110 million.
Despite the strong sales growth over the year, the group noted recent trading in the fourth quarter has been more challenging, with increased cost-of-living pressures softening consumer sentiment.
Kathmandu has so far experienced a slower start to its winter trading period, cycling its “best-ever” winter season performance last year.
KMD reported that sales and retail footfall have been impacted by a warmer start to winter in Australia, and softening consumer sentiment overall. C
“With three weeks of trade still to come, we remain focused on delivering our key Kathmandu winter and Rip Curl Northern Hemisphere summer results while continuing to moderate our cost base for the year ahead,” group CEO and managing director Michael Daly said. “We’re looking forward to delivering over $1 billion in sales at year-end – a first for KMD Brands.”