KMD Brands (ASX:KMD) Records FY26 Sales Growth Alongside Significant Noncash Impairment Charge

Aditi Sarkar

06 November 2026 10:33 PM AEDT

KMD Brands (ASX:KMD) Records FY26 Sales Growth Alongside Significant Noncash Impairment Charge

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Highlights

KMD Brands reported FY26 group sales of NZ$1,053.0 million, increasing 6.5%, as Kathmandu, Rip Curl and Oboz each recorded growth.
Kathmandu increased sales 11.1% to NZ$402.3 million during FY26, supported by stronger direct-to-consumer channel performance across its retail store operations.
KMD Brands expected FY26 underlying EBITDA between NZ$38 million and NZ$41 million, representing more than 123% growth compared with FY25.
KMD Brands recorded a statutory FY26 net loss of NZ$414.4 million, including a NZ$394 million noncash Impairment charge during FY26.

KMD Brands Limited (NZX/ASX: KMD) is the Parent Company of three globally recognised outdoor and lifestyle brands: Kathmandu, Rip Curl, and Oboz. The company released its full-year results for the period ending 31 July 2026 on 23 September 2026, reporting meaningful Revenue growth across all brands while navigating a material non-cash impairment charge.

FY26 Revenue Performance

KMD Brands reported group sales of NZ$1,053.0 million for FY26, representing a 6.5% increase from the prior year. All three brands recorded positive year-on-year sales growth: Kathmandu increased 11.1% to NZ$402.3 million, with strong momentum in direct-to-consumer sales in both Australia and New Zealand. Rip Curl grew 1.7%, supported by solid same-store sales in North America, while Oboz contributed to the group's improved performance. Gross Margin improved 1.2 percentage points to 57.7%.

Underlying Profitability and Impairment

Underlying EBITDA for FY26 was expected to be in the range of NZ$38–41 million, representing more than 123% growth on the prior year's underlying EBITDA of NZ$17.7 million. This significant improvement reflected the benefit of the company's transformation program and $25 million cost savings initiative. However, KMD Brands recorded a statutory net loss after tax of NZ$414.4 million for FY26, which included a NZ$394 million non-cash impairment expense primarily related to the Oboz brand. Excluding this non-cash impairment, the underlying NPAT loss was NZ$9.0 million.

Divestment and FY27 Outlook

During FY26, KMD Brands announced plans to divest a Manufacturing facility, unlocking Capital and improving the group's Liquidity profile. FY27 guidance was provided at the time of the results, with management targeting revenue of NZ$1,055–1,075 million and EBITDA of NZ$52–55 million. No final Dividend was declared for FY26. The company entered FY27 with a strengthened Balance Sheet following the Equity raise completed during the year, and management is focused on further Brand transformation, digital-to-consumer growth, and gross margin improvement.

Stock Price Information

Shares in KMD Brands Limited (ASX:KMD) have been subject to Volatility over the past 12 months reflecting mixed operating conditions. As of 6 November 2026, KMD shares were trading on the ASX. Investors should refer to ASX announcements at www.asx.com.au for current pricing and the latest company disclosures.

FAQs

Q: Why did KMD Brands record a large net loss in FY26?

A: KMD Brands recorded a statutory net loss of NZ$414.4 million in FY26, primarily due to a NZ$394 million non-cash impairment charge, predominantly related to the Oboz brand. Excluding this impairment, the underlying NPAT loss was NZ$9.0 million, with underlying EBITDA improving more than 123% year on year.

Q: Which KMD Brands brand performed best in FY26?

A: Kathmandu was the strongest performer in FY26, delivering sales growth of 11.1% to NZ$402.3 million, driven by strong direct-to-consumer momentum in Australia and New Zealand. The brand's underlying EBITDA swung to a positive NZ$16.1 million from a loss in the prior year.

Q: What is KMD Brands' FY27 outlook?

A: KMD Brands guided FY27 revenue of NZ$1,055–1,075 million and EBITDA of NZ$52–55 million. The company expected gross margin expansion from foreign exchange hedging and strategic price increases, alongside NZ$10 million of annualised cost saving initiatives already underway.

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