Covid-19 triggers KMD Brands’ (ASX:KMD) half year loss

KMD Brands (ASX:KMD), formally known as Katmandu, has reported a loss of $5.1 million ($NZ5.5 million) in the six months to January 31 after stores closures and shipping delays weighed on the New Zealand-based retailer. 

The outdoor clothing business said its second quarter rebounded after being impacted by Covid-19 lockdowns during the first quarter at its Katmandu and Rip Curl stores in Australasia.

Total sales were down 0.8 per cent to $380 million (NZ$407.3 million), while its EBITDA reached $9.5 million (NZ$10.2 million), down 78.8 per cent from the prior year period.

“We continued to deliver on our strategic objectives, positioning KMD Brands for growth as travel rebounds globally and Covid-related impacts on supply abate,” said chief executive officer Michael Daly.

“The Kathmandu Australasian store network was more impacted by Covid closures in Q1 than the Rip Curl global store network, before recovering strongly in Q2.”

“While Kathmandu continued to feel the impacts of Covid related travel restrictions, we were pleased to see a 46.4 per cent increase in online sales, and the business is well positioned to grow internationally, with the Europe Fall / Winter 22 sellin complete, and forward orders in line with expectations.”

The company is set to pay an interim dividend of 3 cents per share.

Shares in Katmandu (ASX:KMD) are trading 0.8 per cent higher at $1.24.