EarningsQ4 2026 Earnings Report
DE:KD2 Q4 2026 EPS Results
Actual EPS-€2.78
Consensus EPS―
Beat/Miss―
One Year Ago EPS-€0.77
DE:KD2 Q4 2026 Revenue Results
Actual Revenue€272.77M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+5.69%
Earnings Announcement Details
QuarterQ4 2026
Date09/22/2026
TimeAfter Close
Conference CallTuesday, September 22, 2026
DE:KD2 Upcoming Earnings
KMD Brands Limited's next earnings date is estimated for March 22, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, with management highlighting the first year of the Next Level turnaround, strong sales growth across all three brands, substantial underlying EBITDA improvement, cost savings above target, improved inventory productivity, technology completion and stronger FY 2027 EBITDA guidance. However, the statutory loss, large impairment, limited constant-currency sales growth, challenging consumer environment, Rip Curl constant-currency decline, Ozmosis weakness, elevated working capital and ongoing tariff and inflation pressures remain material challenges.Company Guidance
Group Sales Growth
FY 2026 group sales increased 6.5%, or more than NZD 60 million, to NZD 1.053 billion. Growth was achieved across both direct-to-consumer and wholesale channels, although constant-currency sales increased 1.7%.
Significant Underlying EBITDA Improvement
Underlying EBITDA increased 137.7% to NZD 42 million from NZD 17.7 million in FY 2025. Underlying EBIT improved to NZD 7.5 million from a loss of NZD 18 million.
Gross Margin Expansion
Group gross margin improved 120 basis points to 57.7%, supported by product mix changes, improved marketplace management, sourcing and input-cost improvements, disciplined markdown management, and NZD 8 million of tariff refunds received before year-end.
Cost Savings Exceeded Target
The group delivered NZD 27.5 million of cost savings in FY 2026, exceeding its original NZD 25 million target. Realized net savings after NZD 8.7 million of reinvestment offset baseline cost inflation on a constant-currency basis.
Operating Efficiency and Inventory Improvements
Operating expenses as a percentage of sales improved by 110 basis points, while underlying operating expenses at constant currency reduced by 0.2%. Inventory reached a four-year low, stock turns improved from 1.65x to 1.76x, and the inventory obsolescence provision declined to 1.5% of gross inventory, 70 basis points below July 2025.
Kathmandu Delivered Strong Turnaround
Kathmandu sales increased 11.1% to NZD 402.3 million despite a net reduction of four stores. Same-store sales including online rose 8.2%, online sales increased 9.6% to NZD 57.1 million, and underlying EBITDA improved to NZD 16.1 million from a loss of NZD 1.3 million. Sales grew in every quarter, with fourth-quarter growth of 9.4%.
Kathmandu Product and Customer Metrics Improved
Kathmandu's return of the XT Series, sharper seasonal product offering, improved retail storytelling, re-engineered digital platform, click-and-collect and ship-from-store capabilities supported growth. Despite flat in-store traffic, conversion, units per transaction, and average transaction value all increased, and each focus category grew, including insulation.
Rip Curl Maintained EBITDA Growth and Online Momentum
Rip Curl reported total sales growth of 3.8% in New Zealand dollar terms, wholesale sales growth of 5.5%, online sales growth of 9.1% to NZD 45.5 million, and underlying EBITDA growth of 12.2%. U.S. retail sales and European summer sales were identified as highlights, while gross margin increased 110 basis points.
Rip Curl Brand Reset Progress
Rip Curl relocated global product creation teams to Torquay, reduced its product line plan by more than 2,000 SKUs versus FY 2025, launched the new Search Series with encouraging early sell-through, and returned its North American business to profitability. A major new wetsuit innovation was scheduled for global launch in the Southern Hemisphere summer.
Oboz Sales and Margin Improvement
Oboz sales increased 3.8%, supported by new products, improving wholesale performance, and continued online growth. Online sales rose 11.8% and wholesale sales increased 2.8%. Gross margin improved 730 basis points due to favorable channel and product mix and NZD 4.3 million of one-time tariff refunds, while operating expenses were tightly controlled.
Digital Channel Expansion
Group online sales grew 9.6% in FY 2026 and represented approximately 15% of group direct-to-consumer sales. Growth was strong across all three brands, supported by the migration of Rip Curl and Oboz to Shopify and a successful ship-from-store trial. Oboz e-commerce sales increased 30% year-on-year in the five months following the Shopify launch.
Technology and AI Investments Completed
The group completed major technology initiatives, including moving Rip Curl onto the D365 ERP platform and implementing Dayforce for human resources management. AI technology was trialed to improve forecasting, buying, replenishment, and allocation, with management stating that it improved customer availability while reducing working-capital intensity.
Balance Sheet and Financing Strengthened
The group completed a NZD 65.5 million equity raise in April 2026, generating NZD 61.9 million net of costs. Net debt was NZD 48.1 million at July 2026, and leverage improved to 1.2x from 3.3x following the equity raise. The refinanced debt facility extends funding to October 1, 2028, total facility capacity increased to NZD 205.2 million after year-end, and the group complied with all banking covenants as at July 31, 2026.
FY 2027 Guidance Indicates Further Improvement
FY 2027 guidance calls for sales of NZD 1.055 billion to NZD 1.075 billion, EBITDA of NZD 52 million to NZD 55 million, and capital expenditure of NZD 15 million to NZD 16 million. The outlook includes further gross-margin expansion from FX hedging, sourcing initiatives and strategic pricing, plus NZD 10 million of annualized cost-saving initiatives already underway.
Positive Early FY 2027 Trading
For the first seven weeks of FY 2027 on a constant-currency basis, Kathmandu direct-to-consumer same-store sales including online increased 7.4%, Rip Curl increased 1.0%, and Rip Curl branded stores increased 4.0%. Management also stated that FY 2026 sales and EBITDA exceeded the range provided in the July trading update, aided by particularly strong trading in the final two weeks.
Store and Portfolio Optimization
The group closed underperforming stores, delivered a step change in store profitability at Rip Curl and Kathmandu, launched four next-generation flagship stores, and plans to continue reducing exposure to lower-return locations. The Southeast Asian manufacturing facility is being divested with a phased production wind-down and third-party production scale-up over the next 12 months.
DE:KD2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed