KMD Brands Limited (KMD) Earnings Call Transcripts

KMD Brands Limited's Latest Earnings Call - March 30, 2026

KMD Brands Limited reported its first half FY '26 results on March 30, 2026, showcasing a significant recovery with group sales up 7.3% year-over-year, driven by strong performance from the Kathmandu brand, which saw a 12.3% increase in sales. The company reported an underlying EBITDA of $11.5 million, a substantial rise from $3.9 million in the prior year, although it still posted a net loss of $11.5 million. Management announced a fully underwritten equity raise of $65 million and a refinancing of its debt facility, aiming to strengthen the balance sheet and support ongoing transformation efforts under its Next Level strategy.

Reported metrics

Guidance from management

Management expects continued sales momentum and gross margin expansion in the second half of FY '26, particularly for Kathmandu, with a focus on optimizing inventory and cost management.

What management said

Well, Kieran, I guess what I would flag is that we had talked to a short-term extension of our debt facility. So it was important that we continue to consider equity and debt in the context of getting a longer-term facility. So part of what we did work with our advisers on was just shaping up both the appetite from our lender base where we had some very constructive conversations and just sizing as a result of that, ...

The only thing I'd add, just obviously, we've sized the raise to accelerate our deleverage to below 0.5x net debt as we talked about this morning by FY '27. So we want to make sure we have a stable capital structure to continue the progress that we're making around Next Level.

What analysts pressed on

Analysts expressed concerns regarding the need for a deeply discounted equity raise and the potential impact of rising freight costs on gross margins. Questions were raised about the softness in Rip Curl's sales trends despite favorable macro conditions and currency tailwinds.

Main topics on the call

• Strong Sales Momentum — KMD Brands experienced a 7.3% increase in total group sales compared to the previous year, with Kathmandu leading the charge at 12.3% growth. CEO Brent Scrimshaw noted, "It's particularly pleasing to see the momentum in ...
• Equity Raise and Debt Refinancing — The company announced a fully underwritten equity raise of $65 million to reduce net debt and strengthen its balance sheet, alongside refinancing its debt facility for a term of up to 2.5 years. CFO Carla Webb-Sear state...
• Improved EBITDA Performance — KMD Brands reported an underlying EBITDA of $11.5 million, significantly up from $3.9 million in the prior year, indicating effective cost management and operational improvements. This growth reflects the company's commi...
• Gross Margin Management — The group managed its gross margin strategically, achieving a gross margin of 56.8%, despite a 120 basis point decrease from the previous year. Carla Webb-Sear mentioned, "Gross margin has been strategically managed whil...

Read the full KMD Brands Limited transcript (March 30, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 19 KMD Brands Limited earnings call transcripts on record, spanning September 22, 2020 to September 22, 2026. Based on this history, KMD Brands Limited reports semi-annually. The most recent call on file is dated September 22, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

KMD

Exchange

NZSE

Country

NZ

Sector

Consumer Discretionary

Industry

Specialty Retail

Calls on record

19

First call

September 22, 2020

Most recent

September 22, 2026

Reporting cadence

semi-annually