Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • KMD’s 3-year financial ambition targets a 60% gross margin and a 10% EBITDA margin.
  • KMD’s FY26 strategy includes cost reduction and a relocation program for growth initiatives based on a self-funding approach.

KMD Brands Limited (NZX:KMD) designs, markets, and retails apparel, footwear, and equipment for surfing and outdoor activities. The company reported NZD 470,945,000 in sales revenue and NZD 275,490,000 in gross profit, with a gross margin of 58.5% compared to the 37.8% industry median for the first half of the financial year 2025 (H1 FY25). Sales grew through DTC and online channels, with double-digit YoY growth across all three brands. Gross margin decreased slightly due to higher promotions at Kathmandu and inventory clearance at Oboz. The dividend policy targets a 50%–70% payout of NPAT, with special dividends and buybacks considered when capital and leverage targets are met.

Business Update

On 4 September 2025, KMD stated that its transformation strategy focuses on key priorities already underway: resetting for sustainable profitability by improving operational leverage and unlocking new pathways to higher returns, while refocusing product innovation to enhance technical performance and investing in faster design and market style.

Company Outlook

KMD is planning growth from the bottom up with clear deliverables, actively balancing cost savings and growth initiatives, and managing working capital as well as net debt positions with data-driven insights.

The company’s financial ambition for the upcoming 3 years includes a 60% gross margin and a 10% EBITDA margin. The company’s next strategic action for FY 2026 includes immediate cost reduction and a reallocation program to address legacy costs, along with robust scoping and sequencing of growth initiatives based on a self-funding approach.

Share performance of KMD

KMD’s shares closed 2.13% higher at AUD 0.24 per share on 17 September 2025. Over the past year, KMD’s share price has dropped by almost 53.85% and in the last six months, it has dropped 34.25%.

The 52-week high of KMD is NZD 0.54, recorded on 1 October 2024 and a 52-week low is NZD 0.23, recorded on 28 August 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 17 September 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they fall, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.