New Zealand’s KMD Brands hits record low on weak sales, forecast

Published 19/06/2025, 01:20
© Reuters.

Investing.com-- Shares of KMD Brands Ltd (NZ:KMD) plunged to a record low on Wednesday after the outdoor clothing retailer issued a downbeat trading update, citing sluggish sales and unseasonably warm weather in Australia as key headwinds.

The stock fell 8.5% to NZ$0.270 in early trade, the lowest level since the company’s listing, after KMD reported a 0.5% decline in group sales for the 10 months to May 2025.

Sales at its flagship Kathmandu unit dropped 6.4% in the February–May period due to weaker demand for insulation products, although a recent shift to cooler weather has seen a modest rebound, the company said.

The group expects FY25 underlying EBITDA to fall between NZ$15 million and NZ$25 million, significantly below prior market expectations. KMD also flagged a potential NZ$1 million hit from U.S. tariffs and cut inventory commitments for FY26.

CEO Brent Scrimshaw said the group was navigating “challenging market conditions” and will outline recovery plans at its investor day in September.

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