KMD Kathmandu Brands

[winner (n)]

Well, yes - three of the directors accumulated or bought recently ....

Philip Bowman increased his holding in two steps from 400k to 650k;
David Kirk bought 250k shares and
Abby Foote increased her holding from 65k to 130k.

All quite meaningful holdings .... I assume this means they are reasonable optimistic re Kathmandus  fortunes :

Good to see directors following David's edict to buy shares to demonstrate your support of the company and stop the share price sliding into oblivion

[BlackPeter]

Good to see directors following David's edict to buy shares to demonstrate your support of the company and stop the share price sliding into oblivion

Hmm - what's your beef with KMD?

I honestly doubt that directors put up several 100k of personal funds just to satisfy an imaginary request by the chair ...

BTW - I hear Cotton On doing not too bad across the ditch  ... maybe times are not too bad for quality rug traders?

[winner (n)]

Hmm - what's your beef with KMD?

I honestly doubt that directors put up several 100k of personal funds just to satisfy an imaginary request by the chair ...

BTW - I hear Cotton On doing not too bad across the ditch  ... maybe times are not too bad for quality rug traders?

No beef with KMD - but i've learnt over the years that getting excited when Directors buy shares it's not good for your health ... and clouds one judgement

And Glassons showing that quality rag traders aren't doing too bad

And Kathmandu like me as a customer

[BlackPeter]

I agree - if directors buying is the only indicator, then this would be a bit thin (as with any other stand-alone indicator).

I see as well that earnings trend dropped (on a per share basis), while revenue increased ... which is normally a bad sign, but in this case easily explainable with a mistimed emergency capital rise (and subsequent dilution).

As well, analysts expect the uptrend to resume again, but sure - nothing in the future is certain ;

On the plus side ... I do see a forward PE of 10, a dividend yield of 6.7% (though not fully imputed) and I do see good retailers (and I count them into this category) making promising noises re business / margins. Customers get used to increased prices and freight rates are actually dropping.

I guess nothing is certain but uncertainty ... but I do see them at the current price as a promising play ...

[winner (n)]

With KMD you've got to think Global and the opportunities that bring. KMD not really a NZ company anymore

If you judge them on NZ you'd run a mile from this high profile best in breed dog - based on this sales trend

2014   $141.0m
2015   $139.1m
2016   $141.7m
2017   $146.4m
2018   $143.0m
2019   $138.6m
2020   $133.7m
2021   $120.8m
2022   $113.9m

Just as well NZ only going to be less than 10% of group sales eh

See Alan Gray became a SSH the other - they are renowned 'value' / 'contrarian'   investor and include the likes of FBU in NZ holdings

[Waltzing]

Could be another 6 moths or so before this lifts off as Europe will be under water retail for a while until next summer?

could be a while giving somerunway before taking a position here on this one.

[Basil]

I agree Waltzing.  Europe is such a mess at present.  People desperate just to pay their power and gas bills which have literally exploded in price and put food on the table.  Doubt too many will be buying expensive Kathmandu, Canada Goose or any other high end jackets anytime soon.  Cheap thick polar fleece on the other hand should be selling like hotcakes to people who can't afford to heat their homes properly any more.

[Shareguy]

I agree Waltzing.  Europe is such a mess at present.  People desperate just to pay their power and gas bills which have literally exploded in price and put food on the table.  Doubt too many will be buying expensive Kathmandu, Canada Goose or any other high end jackets anytime soon.  Cheap thick polar fleece on the other hand should be selling like hotcakes to people who can't afford to heat their homes properly any more.

According to investor presentation YE 2021 total sales are $980m with UK sales $100m. I do agree with your comments, caution is warranted but UK not main market. CEO has also stated a push in the UK so might not end up to bad. 

I have also been researching retail during the GFC and other recession's. Came to the conclusion that people still like spending on looking good outdoors, even in tough times.

My kids tell me a Katmandu jacket in winter and Rip Curl are like what "nomads" were  in the old days.

[BlackPeter]

I agree Waltzing.  Europe is such a mess at present.  People desperate just to pay their power and gas bills which have literally exploded in price and put food on the table.  Doubt too many will be buying expensive Kathmandu, Canada Goose or any other high end jackets anytime soon.  Cheap thick polar fleece on the other hand should be selling like hotcakes to people who can't afford to heat their homes properly any more.

Interesting that the people with the largest distance to Europe seem to have the best idea what's going on there ... when I talk with our relatives back on the old continent, they tell me just about their third holiday trip this year ... and I am pretty sure, they didn't go naked ;

Increased gas prices just rippling themselves now into the household bills (i.e. the stuff everybody here is complaining about for the last 6 months is now just starting to happen. However - many do have alternatives. Our son has a heating system which works as well with firewood ... and many of the older gas systems can be operated as well with diesel.

But I probably need to tell my relatives about the astronomic electricity prices we pay here in NZ (what was it recently - $200,000 per GWh)? I am sure, this gives them something to laugh ... and maybe they set up a donation account for the poor people in NZ?

OK - yes, there are poor people in Europe as well, but probably not more (in proportion) than in NZ. And hey, we still sell higher quality stuff as well, don't we? That's exactly the same situation like in Europe.

[Basil]

Off topic but some facts on U.K. power prices might interest some people.  From 1 October 2022 its gone up to 52p per kw/hr
https://energyguide.org.uk/average-cost-electricity-kwh-uk/ = $1.03 Kiwi per kw/hr.  Any way you slice and dice it that's "shocking"
I believe most people in N.Z. are paying in the 20-30 cents per kw/hr range.

[Waltzing]

The swedes are nervous, very nervous and while not back in eureop at the moment have been warned not to return yet...

will be looking to replace some rip curl this summer for sure.. They used to last a good decade for so and had posted shots of these amazing clothing items that some have last decades.

[BlackPeter]

Off topic but some facts on U.K. power prices might interest some people.  From 1 October 2022 its gone up to 52p per kw/hr
https://energyguide.org.uk/average-cost-electricity-kwh-uk/ = $1.03 Kiwi per kw/hr.  Any way you slice and dice it that's "shocking"
I believe most people in N.Z. are paying in the 20-30 cents per kw/hr range.

If true, this is dear. However - I note that you are talking about a BREXIT riddled UK ... I thought we are talking Europe? Little England shot itself into the foot and is not any more part of it.

Power prices (per kWh) in the heart of Europe are currently somewhere around 30 to 40 Euro cents - i.e. 50 to 70 NZ cents. More expensive than here, but they typically have been twice the NZ rates for a long time.

[Recaster]

A bit of a look at this stock:

[BlackPeter]

Anybody else noticed the recent Share price move, or did you all take after the relentless doom and gloom on this thread KMD out of your portfolios and watchlists?

SP moved above MA100 (the pink line below) and so far holding. Sure - early signs, but certainly worthwhile to watch. I like the green shoots coming out in spring ;

You cannot view this attachment.


Discl: holding;

[Shareguy]

Thanks for posting that graph BP. Yes I have noticed. My only retail stock. I don't think investors realise or trust what the future EPS is forecast. Insider buying is a big positive.