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KMD Brands Limited
(KMD)
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Rating:48Neutral
Price Target:
$2.00
▲(19.05% Upside)
Action:N/A
Date:10/05/26
The score is held back primarily by deteriorated financials (losses, margin pressure, higher leverage and a collapse in free cash flow). The earnings call improves the outlook somewhat due to clear EBITDA recovery and constructive FY 2027 guidance, but technicals remain neutral with the stock still below its long-term trend and valuation remains constrained by loss-making earnings and no dividend support.
Positive Factors
Turnaround execution and cost discipline
The sharp EBITDA recovery and savings delivered above target indicate that the Next Level turnaround is improving operating leverage, not merely relying on sales growth. Lower costs and better expense control can support more resilient profitability as management continues its multi-year efficiency program.
Negative Factors
Severe statutory loss and impairment
The very large statutory loss and impairment reveal that the carrying value of KMD’s brands and goodwill has been materially reset after prolonged weak performance. Although non-cash, the charge reflects reduced confidence in historical earnings power and leaves profitability recovery still unproven.
Read all positive and negative factors
Positive Factors
Negative Factors
Turnaround execution and cost discipline
The sharp EBITDA recovery and savings delivered above target indicate that the Next Level turnaround is improving operating leverage, not merely relying on sales growth. Lower costs and better expense control can support more resilient profitability as management continues its multi-year efficiency program.
Read all positive factors
KMD Brands Limited (KMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$133.88M
Dividend Yield4.56%
Average Volume (3M)71.17K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth6.47%
EPS Growth-193.50%
CountryNZ
Employees4,721
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-5.88
Shares Outstanding71,976,600
10 Day Avg. Volume103,913
30 Day Avg. Volume71,170
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.28
Price to Sales (P/S)0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.06
Revenue Forecast (FY)$1.07B
KMD Brands Limited Business Overview & Revenue Model
Company Description
KMD Brands Ltd. engages in the design, marketing, retail, and wholesale of apparel, footwear, and equipment for surfing and the outdoors. It operates through the following segments: Rip Curl, Kathmandu, Oboz, and Corporate. The Rip Curl segment in...
How the Company Makes Money
KMD makes money primarily by selling branded apparel, footwear, and equipment across multiple channels. (1) Direct-to-consumer (DTC) retail revenue: The company sells products through its owned physical stores (e.g., Kathmandu and Rip Curl branded...
KMD Brands Limited Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 22, 2027
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.Positive Updates
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%.
Negative Updates
Large Statutory Loss and Impairment Charge
The group reported statutory EBITDA of negative NZD 323.6 million and a statutory loss after tax of NZD 414.4 million. The result included a NZD 462.7 million non-cash intangible asset impairment across all three brands, goodwill and brand assets.
Read all updates
Q4-2026 Updates
Positive
Negative
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%.
Read all positive updates
Company Guidance
For FY 2027, group guidance is sales of between NZD 1.055 billion and NZD 1.075 billion, EBITDA of between NZD 52 million and NZD 55 million, capital expenditure of between NZD 15 million and NZD 16 million, and depreciation in the range of NZD 40 million to NZD 41 million; the guidance assumes the consumer environment remains challenging. Direct-to-consumer same-store sales, including online year-on-year on a constant currency basis for the first seven weeks, were Kathmandu, +7.4% year-on-year, Rip Curl, +1% year-on-year, Rip Curl brand stores, +4% year-on-year, and Ozmosis multi-brand stores, -12.1% year-on-year. Kathmandu sales momentum is expected to continue, Rip Curl sales are expected to benefit in H1 from next-gen designed product, and an Ozmosis remediation plan includes the closure of five underperforming stores. Group gross margin expansion is anticipated, with gross margin expected above 57.7% on a reported basis, supported by FX benefits, sourcing initiatives, and pricing actions, while further NZD 10 million of annualized cost-saving initiatives are already underway; net debt below 0.5x by the end of 27 remains the target.KMD Brands Limited Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
41
Neutral
Cash Flow
45
Neutral
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.05B | 989.01M | 971.05M | 1.09B | 969.16M |
| Gross Profit | 475.68M | 559.26M | 568.10M | 640.24M | 566.09M |
| EBITDA | 137.75M | -11.30M | 96.34M | 198.56M | 179.48M |
| Net Income | -415.96M | -95.06M | -49.76M | 35.14M | 35.95M |
Balance Sheet | |||||
| Total Assets | 922.20M | 1.35B | 1.44B | 1.53B | 1.55B |
| Cash, Cash Equivalents and Short-Term Investments | 41.00M | 34.28M | 33.95M | 49.49M | 70.81M |
| Total Debt | 364.29M | 374.88M | 387.78M | 407.31M | 395.47M |
| Total Liabilities | 552.80M | 660.71M | 651.92M | 691.84M | 702.01M |
| Stockholders Equity | 362.67M | 684.04M | 779.93M | 836.27M | 845.73M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 113.03M | 112.13M | 111.60M | 48.98M |
| Operating Cash Flow | 66.80M | 126.16M | 144.65M | 147.59M | 81.81M |
| Investing Cash Flow | -20.30M | -24.46M | -32.52M | -35.99M | -32.83M |
| Financing Cash Flow | 61.90M | -101.14M | -128.38M | -131.40M | -125.26M |
KMD Brands Limited Technical Analysis
Negative
1.68
Price Trends
1.81
Positive
1.81
Positive
2.49
Negative
Market Momentum
0.02
Positive
51.89
Neutral
22.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:KMD, the sentiment is Negative. The current price of 1.68 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 1.81, and below the 200-day MA of 2.49, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:KMD.
KMD Brands Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $615.76M | 19.33 | 5.14% | 4.44% | -9.00% | ― | |
54 Neutral | $676.57M | 17.57 | 12.23% | 4.30% | 9.03% | -2.47% | |
51 Neutral | $222.75M | 21.38 | 3.61% | 10.26% | -1.92% | ― | |
50 Neutral | $53.89M | -4.47 | ― | 2.60% | 20.79% | -160.65% | |
48 Neutral | $133.88M | -0.32 | -79.57% | 4.56% | 6.47% | -193.50% | |
45 Neutral | $8.83M | 20.98 | -17.64% | ― | 90.03% | -53.08% |
* Consumer Cyclical Sector Average
NZ:KMD
KMD Brands Limited
1.91
-2.38
-55.51%
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NZ:CCC
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NZ:BRW
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.