Surfing brand Rip Curl has reported a 34.3 per cent slip in its earnings before interest and tax (EBIT) off the back of a sales lift in the first half of FY26.
The brand’s total sales hit NZ$291.4 million, which its parent company KMD Brands said is helped by the year-on-year movement in foreign exchange rates used to convert global sales to NZD reporting currency.
On a constant currency basis, Rip Curl’s total sales were up just 0.3 per cent.
The brand’s wholesale sales increased by 9.8 per cent year-on-year, supported by strong demand in Europe and North America. Direct-to-consumer sales, including its online channel, increased by 1.9 per cent, with strong sales for North America offsetting a challenging market during the southern hemisphere peak summer period.
Rip Curl operates over 80 stores and outlets across Australia and New Zealand, according to the brand’s website.
Online sales increased by 6.7 per cent to NZ$22.5 million, comprising 12 per cent of DTC sales. DTC same store sales – both owned retail stores and online – increased by 1.5 per cent.
Rip Curl’s gross margin decreased by 1.2 per cent of sales, impacted by wholesale channel mix and elevated promotional activity.
Underlying operating expenses were in line with last year on a constant currency basis, with KMD Brands noting a strategic cost reset has helped to offset strategic growth investments and continued global cost pressures.
On a group-level, including Kathmandu and Oboz Footwear, KMD Brands reported a total sales lift of 7.3 per cent, driven more by Kathmandu.
Group gross margin decreased by 1.2 per cent of sales below last year to 56.8 per cent. According to KMD, each brand had balanced sales growth with gross margin achievement in a promotional market, while optimising inventory composition and selling through aged inventory.
The group’s inventory balance reduced for the third successive year, decreasing by NZ$29.6 million.
Rip Curl's DTC same-store sales for the first six full weeks of the second half (February 2 to March 15 this year), grew by 1.2 per cent.