Kathmandu, Rip Curl sales boosted by travellers, firming plans for global expansion

Globetrotting holidaymakers are fuelling strong sales momentum at Rip Curl and Kathmandu operator KMD Brands, with the group’s boss bullish on expansion plans in Australia and overseas despite economic uncertainty.

The ASX-listed outdoor lifestyle outfit recorded a $NZ14 million ($13 million) profit for the six months to the end of January – a 352 per cent improvement on the same time last year, when pandemic interruptions led to the company recording a $NZ5.1 million loss.

Sales at outdoor clothing maker Kathmandu were up by 51.2 per cent to $NZ194 million, while wetsuit and surfwear brand Rip Curl grew by 18.8 per cent to $306.4 million.

Chief executive Michael Daly said that sales had continued to surge in February, and were up by 31.9 per cent across the group compared with last year.

The return of international travel and tourism is helping to lift the retailer, as holidaymakers in places like Hawaii and Queensland drop in to buy travel supplies, clothing and T-shirts and make last-minute purchases before they jump on a plane.

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Daly said that while it’s hard to predict what will happen to spending confidence across the globe for the rest of this year, the company is well-positioned because it sells “products for a purpose”, and caters to shoppers who are still on a strong financial footing.

Rip Curl stores outside of Australia will continue to see strong demand, he said.

“With our stores being in places like Hawaii, Auckland CBD and the west coast of France, I’m not sure we’re selling necessarily to those that are going to really feel mortgage stress.”