The return of travel boosts Kathmandu after heavy COVID hit

Sales at the operator of outdoor clothing retailer Kathmandu hit record levels in 2022 and investors will see an upsized dividend, but the impacts of the COVID pandemic sent the company’s profits sliding.

KMD Brands, which operates the Kathmandu, Rip Curl and Oboz brands, grew group sales by 6.2 per cent for the year to $NZ979.8 million ($868 million), which was a record result for the group.

However, the retailer’s net profit after tax (NPAT) came in 33.7 per cent lower than 2021, hitting $NZ36.8 million.

Chief executive Michael Daly said the effects of COVID-19 were now largely behind the company, with travel bouncing back and border restrictions softening across the world.

Despite this, Kathmandu and Rip Curl suffered a $NZ35 million hit during the year as lockdowns hit sales.

Footwear brand Oboz also suffered throughout the year after the closure of factories in Vietnam throughout 2021 impacted the company’s ability to meet customer demand.

Sales at Kathmandu and Rip Curl bounced back strongly in the second half as customers returned to travel and outdoor activities. Kathmandu saw its strongest-ever sales in the fourth quarter. Daly said momentum had continued in the first weeks of the new year as shoppers kept spending.

“The momentum from the strong final quarter of FY22 has continued. August sales for the Group were up 44.2% on August 2021, and 10.3% above pre-COVID August 2019,” he said.