Distributors who have been selling back up batteries and tech camping gear to KMD Brands, the retailer that owns outdoor adventure wear store Kathmandu and surfing brand Rip Curl are facing a downturn in sales after the business reported a $9M loss for the first half of 2023/2024 financial year.
Several brands have pitched the retailer in an effort to expand sales of tech camping gear, with many offering house brand solutions spanning lights and battery backup.
Last year the business reported a profit of $NZ14m last year, with sales down 14.5 per cent to $NZ468.64m.
The business has skipped paying an interim dividend.
The company said that their Kathmandu business suffered from inconsistent trading conditions, shut down borders and tourist flow from the Covid-19 pandemic and a highly competitive Australia and New Zealand camping retail sector.
Sales for its Kathmandu fell 21.5 per cent to $NZ152.3m, and it recorded an earnings loss of $NZ18m.
At Rip Curl, sales fell 9.2 per cent to $NZ278.3m, however they did manage a profit of $20.8m.
The company said its Kathmandu chain faces a number of challenges including a reliance on winter weight products which have increased, specifically outerwear, and that product innovation has not delivered commercial outcomes.
It said the product development timeline had less flexibility for emerging market trends and there was too much reliance on vertical brand products against leveraging third parties.
In a trading update provided along with the results, KMD Brands said Kathmandu sales for February were down 2.8 per cent and down 19.9 per cent year to date. Rip Curl’s sales fell 1.7 per cent for the month and 8.2 per cent year to date.
