KMD Brands reports $414m loss after Rip Curl and Kathmandu impairments
KMD Brands reported a $414 million statutory loss for the 2026 financial year, driven largely by significant intangible asset impairments for its Rip Curl and Kathmandu brands. Despite the loss, the company noted improved underlying earnings and is considering multiple takeover approaches.
Why it matters
The report illustrates the volatility of retail brands and the potential for consolidation in the outdoor apparel market.
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Major impairments to Rip Curl and Kathmandu have hampered an otherwise positive result for KMD Brands with sales up year-on-year.
But despite publicly declining previous takeover rumours, the group’s board has confirmed it is considering a number of indicative approaches from external parties.
For the year ended July 31, 2026, KMD Brands reported statutory group sales of $1.05 billion, up 6.5% from the prior corresponding period.
The result was driven by a strong 11.1% increase in sales for outdoor brand Kathmandu to $402.3 million, with earnings before interest and tax (ebit) up 105.7% from a $19.6m loss to a $1.1m profit.
Strong sales results occurred in both Australia and New Zealand, up 4.3% and 11.7% year-on-year, respectively, with positive sales growth in every quarter of the year.
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