KMD Brands considers takeover offers following heavy fiscal 2026 loss

KMD Brands, the owner of Kathmandu, Rip Curl, and Oboz, has expressed openness to takeover proposals following significant losses in fiscal 2026. The company reported a statutory loss of $414.4 million, largely driven by a $394 million one-off post-tax impairment, resulting in a $9 million underlying loss.

Despite the financial setbacks, the retailer noted that its ‘Next Level’ turnaround strategy is showing signs of progress. Groupwide sales for the 12 months ending July 31 rose by 6.5 per cent to $1.05 billion. This growth was led by an 11.1 per cent increase at Kathmandu, while Rip Curl and Oboz both saw sales growth of 3.8 per cent.

The fiscal year was marked by a business review and a capital raise conducted alongside Goldman Sachs, which involved selling shares at a significant discount and led to the resignation of former chair David Kirk. The new chair, Philip Bowman, stated that while the board remains focused on improving profitability and reducing leverage, it will continue to assess opportunities that could accelerate shareholder value.