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KATHMANDU HOLDINGS LIMITED
ASX / NZX / MEDIA ANNOUNCEMENT
9 November 2021
(All amounts in NZ$ unless otherwise stated)
Kathmandu Holdings Q1 earnings impacted by COVID lockdowns
Kathmandu Holdings Limited (NZX / ASX: KMD) (the Group) today provides the following trading update in conjunction with a virtual investor day being held for institutional shareholders.
Same store sales (including online) for the 13 full weeks to 31 October 2021 were significantly impacted by ongoing Australasian COVID lockdowns:
- Rip Curl -9.4% overall, +1.6% adjusted for COVID lockdowns1
- Kathmandu -17.6% overall, +16.3% adjusted for COVID lockdowns1
Pleasingly, online sales have grown strongly at +33.8%, with Rip Curl +11.2% and Kathmandu +58.4%.
As previously signalled, COVID lockdowns have significantly impacted Q1 results. Net COVID impact is expected to result in Q1 operating profit being c.$35 million below last year as lockdowns in NSW, Victoria, ACT and NZ were more severe than prior comparative period, without any direct Government subsidies recognised to date in FY22. Recently the Group has seen positive momentum in the short period following the reopening of NSW and Victoria markets, notably for Rip Curl which is cycling +27% same store sales growth adjusted for COVID lockdowns1 from Q1 FY21.
Rip Curl and Kathmandu are well prepared for the key Black Friday and Christmas trading period, and inventory remains sufficient to meet expected demand. Due to the uncertain COVID trading environment the Group will not provide forward guidance, however as markets reopen, trading is expected to improve with growth opportunity in the second half of FY22.
Rip Curl and Oboz wholesale order books remain significantly above pre-COVID levels. The Group is actively managing ongoing supply chain disruption globally, particularly impacting the timely flow of products into our North American markets. Oboz product deliveries will be impacted for Q2 as Vietnam footwear factories slowly ramp up production following COVID closures during Q1. Demand for Rip Curl wetsuits continues to exceed available supply. Freight, logistics and raw material costs remain elevated as the outlook for supply chain remains challenging. This will be managed where possible through pricing and raw material substitution.
Commenting on trading, Group CEO Michael Daly said:
"COVID-19 continued to be a major disruption in the first quarter, with Australasian retail stores significantly impacted by lockdowns, and supply chain disruption impacting our ability to fulfil strong wholesale demand. Despite the challenging trading conditions to date, we are ready to capitalise on growth opportunities as COVID restrictions ease. The Group continues to invest in the long-term expansion of our global house of outdoor brands."
- ENDS -
This announcement has been authorised for release by the Board.
For further information, please contact: | |
Investors | Media |
Eric Kuret | Helen McCombie |
Market Eye | Citadel-MAGNUS |
P: +61 417 311 335 | P: + 61 2 8234 0103 |
1 Adjusted same store sales removes stores that were not able to open for a comparable period in either year because of COVID lockdowns
Kathmandu Holdings Ltd | 1 |
kathmanduholdings.com |
ersonal use only
INVESTOR DAY
9 NOVEMBER 2021
useonlyChairman | |
ersonal | David Kirk |
2 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Agenda
Time | Topic |
only | Welcome |
9.00am | |
9.05am | Group strategy |
9.20am | Rip Curl |
9.35am | Oboz |
use | Kathmandu |
9.50am | |
10.40am | Q&A |
11.00am | Close |
ersonal |
3 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Presenters
David Kirk
Michael Daly and Chris Kinraid
Brooke Farris
Amy Beck
Reuben Casey, Robert Fry and Eva Barrett
Today's Presenters
Michael Daly: Group CEO and Managing Director
Michael was the CEO for Rip Curl from early 2013 with a relentless focus on brand, product and the crew contributing to
only | the brand's recent success. Michael was previously the CFO |
and COO of Rip Curl for over 10 years. Since May 2021 Michael | |
has been in the role of Group CEO and is now looking forward to | |
leading three iconic brands to grow and develop the Group. | |
Brooke Farris: Rip Curl CEO | |
Since joining Rip Curl in 2010, Brooke's time at Rip Curl has | |
encompassed a range of roles, from running Rip Curl surf | |
use | events around the world, executing marketing strategy as the |
ANZ Marketing Manager, to leading strong sales growth online | |
as the GM of Digital, and most recently as the GM of Women's. | |
Chris Kinraid: Group Chief Financial Officer | |
Joined Kathmandu in 2014, and has been Group CFO since | |
May 2019, with over 13 years in senior group finance and | |
ersonal | analyst roles at large FMCG, pharmaceutical, and technology |
multinationals including Cadbury Plc and Alliance Boots. Chris | |
began his career in audit at PwC. | |
Eva Barrett: Chief Customer Officer (Kathmandu)
Joined Kathmandu in 2020, with over 20 years experience in global brand and marketing roles at large international organisations including adidas, Philips and Carlton United Breweries based in Europe, APAC and the U.S. An experienced brand and marketing professional she specialises in driving transformation of global brand, digital, ecommerce, marketing and customer teams.
4 | KATHMANDU HOLDINGS INVESTOR DAY 2021
Reuben Casey: Kathmandu CEO
Reuben was appointed Kathmandu brand CEO in October 2019 and has been an integral part of the business including serving as CFO and COO since joining Kathmandu in 2010. Prior to Kathmandu he held senior financial management roles, including TaylorMade-adidas Golf, Meridian Energy, and KPMG.
Amy Beck: President Oboz
Joined Oboz / Kathmandu in 2019 and has extensive experience in the outdoor and fashion industries with a wide range of skills
including retail, brand marketing, distribution strategy, and sales
management. More recently, Amy held executive roles at Smartwool and Lucy Activewear, both part of VF Corporation.
Robert Fry: GM Product (Kathmandu)
Prior to joining Kathmandu, Robert served in various global product lead roles for brands such as The North Face, Mountain
Hardwear, and Black Diamond. Between 2017 and 2020,
his company, Reasonworx, developed successful go-to-market and innovation platforms for clients such as Cole Haan, Marmot, Woolmark, Big Agnes, Burton, ROAM Robotics among others. He specializes in strategic transformation and next-level product execution.
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Kathmandu Holdings Limited published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 20:47:05 UTC.