KMD Kathmandu Brands

[Waltzing]

the RIP CURL creators knew DA market and no corp is going to do that ..

like saying we understand skate boarders .. good luck just watch the early skate board movies about skating pools in the US ..

now someone been buying .. probably dont skate or surf ... WHO DAT BUYING !!!

https://api.nzx.com/public/announcement/439814/attachment/429243/439814-429243.pdf

[BlackPeter]

the RIP CURL creators knew DA market and no corp is going to do that ..

like saying we understand skate boarders .. good luck just watch the early skate board movies about skating pools in the US ..

now someone been buying .. probably dont skate or surf ... WHO DAT BUYING !!!

https://api.nzx.com/public/announcement/439814/attachment/429243/439814-429243.pdf

Actually - great hedge ... if surfers and skaters have more accidents, than ACC can pay for the treatment with the increased dividend from KMD. They just need to make sure that surfers (or better everybody having an accident) are only covered if they wear appropriate clothing (aka Rip Curl or anything else supplied by KMD). Hey, this would be great, wouldn't it? - self funding accidents!

[winner (n)]

BP ..no divies from KMD for a while

Wonder who sold thev50 million shares today?

[Shareguy]

BP ..no divies from KMD for a while

Wonder who sold thev50 million shares today?

Indeed. Hopefully find out Tom. I'm more interested in who has brought them.

One trade of 50328. From latest annual report

Briscoe has 48m
Yara capital 50902
NZ Super 90m
Alan Gray 115m

If Alan Gray has purchased them taking into account acc would take them over 20 percent. So Alan Gray disclosed on ASX today at 17 percent

[BlackPeter]

BP ..no divies from KMD for a while

Wonder who sold thev50 million shares today?

Interesting question. Well, it was not me (neither selling nor buying), but given that this is roughly 7% of all shares, a look into the top 10 share holders or so might give a clue. It won't be Rod, will it?

[winner (n)]

Indeed. Hopefully find out Tom. I'm more interested in who has brought them.

One trade of 50328. From latest annual report

Briscoe has 48m
Yara capital 50902
NZ Super 90m
Alan Gray 115m

If Alan Gray has purchased them taking into account acc would take them over 20 percent.

Bloody hell NZ Super got 90 million ..thought they were clever

Saw one of their investment guys out walking the wharf the other night ...not even in Kathmandu gear

[Shareguy]

Bloody hell NZ Super got 90 million ..thought they were clever

Saw one of their investment guys out walking the wharf the other night ...not even in Kathmandu gear

Alan Gray just disclosed on ASX at 17.7 percent. Note it's only till the 9/10. Plot thickens. Looks like it went to multiple buyers says NZ Herald.

[winner (n)]

May as well post here as well

I pulled these historical numbers out for Kathmandu. Period starts before they went on the acquisition trail and spent zillions buying Oboz and Rip Curl.

You'd have to say that these acquisitions haven't added any value .....abject failure I'd say and I'd say you can't blame the challenging market conditions for this dismal performance.

Before the acquisitions the company sales were about $500m with a profit margin of nearly 12% and a ROE of about 14%. All good stuff.

In spite of sales doubling profits have disappeared ......on average the profits they have made are less than pre acquisition.

All that capital raised essentially produced zilch.

No wonder the share price is where it is

Getting rid of CEO and bring in new man ain't going to help much ...company almost beyond redemption and if it recovers it'll take years

Might be taken over by a brave acquiror ...all I'd say is good luck to them.

Any have a look at these numbersYou cannot view this attachment.

[BlackPeter]

Cheers for the analysis, which I "liked"- the analysis, not the numbers.

Sad RoE and pathetic stock turnover.

Overall - pretty sobering picture. Buying brands and physical factories did clearly not work for them (though I remember some years where Rip Curl sort of saved the bacon) - i.e. the base business was doing still worse).

Maybe they should go back to their core business and just sell good stuff from whatever brand they can get their hands on using the Briscoes sales strategy ...

[Basil]

Nice work Winner. Always has had very poor stock turn and looks to have got worse lately.
Did they tout various synergies at the time of the acquisition and what happened to them?  Even if no synergies claimed with the capital raise, this is good evidence that bolt on acquisitions are by no means a certainty to be eps accretive and often are so much work, management take their eye off the core business, which is what appears to be the case here.
Lately, profit margin has been not much better than WHS which is a real shocker.  I find that difficult to understand when you look at the price of Kathmandu gear which is very expensive even when on "so-called "sale"    Agree, a LOT of work for the new CEO to do.
ACC have been buying though.  Maybe they like small punts on flea ridden dogs as a small part of their portfolio?  Heck, even I am having a small punt on an unproven and unconsented mine with Santana minerals that BP reckons is going to devastate the environment so not only am I also prone to the occasional small punt myself, but also on sin stocks that destroy the environment...makes me a bad person and a really evil punter eh 

[Shareguy]

Indeed. Hopefully find out Tom. I'm more interested in who has brought them.

One trade of 50328. From latest annual report

Briscoe has 48m
Yara capital 50902
NZ Super 90m
Alan Gray 115m

If Alan Gray has purchased them taking into account acc would take them over 20 percent. So Alan Gray disclosed on ASX today at 17 percent

Ok so it's Yara who sold.

[Shareguy]

Might be taken over by a brave acquiror ...all I'd say is good luck to them.

Any have a look at these numbersYou cannot view this attachment.
[/quote]

Great work Winner,Thankyou. If you look at the purchase of Ripcurl I suggest it saved the day and Kathmandu would not have survived.

[Ferg]

What is "asset turnover" measuring?  It looks like some have interpreted this as inventory turnover...perhaps?  Also, I'm not sure what this metric is trying to show.

[winner (n)]

What is "asset turnover" measuring?  It looks like some have interpreted this as inventory turnover...perhaps?  Also, I'm not sure what this metric is trying to show.

Asset turnover is a ratio that measures how efficiently a company uses its assets to generate sales. The higher the better as more sales generally more profit. For KMD this has been declining over the last few years ...as have profits. Briscoes on other hand has a steady asset turnover of about 1.7.

Stock one of main assets and as you can appreciate more the stock turns over the better eh. This just an extension of that



What I've shown is just the output of the Du Pont Model. Good tool to compare companies in same industry.

Crux is ROE is Profit Margin X Asset Turnover X Financial Leverage. Can obtain good insights as to how a company is going.

Point of showing this Kathmandu is that the recent acquisitions have basically added no value ....could even be a destruction of value.

[Ferg]

Crux is ROE is Profit Margin X Asset Turnover X Financial Leverage. Can obtain good insights as to how a company is going.

That makes sense.  I was going to say RoE is a better measure given it doesn't ignore debt funding, whereas RoA does.  But I see you are breaking RoE into its components.  Makes sense - otherwise RoA on its own is of little value IMO.