KMD Kathmandu Brands

[Shareguy]

Craig's thoughts on the result

   
The positives

(1) sales run-rates across all brands saw a significant improvement in Q2 vs. Q1, 2) Kathmandu's mkt. share losses appear to have stabilized, 3) Rip Curl's brand health and margins remain intact, despite broader surf category challenges, 4) KMD's balance sheet is in reasonable shape.

The negatives

 (1) short-term margin pressure is expected for all brands (predominantly Kathmandu), 2) Rip Curl (60% of Group sales in 1H) must now contend with a flood of inventory hitting the market in North America due to competitor store closures, 3) the Wholesale channel recovery has been slow (with timing still uncertain), and 4) Kathmandu's performance through the key 2H period remains heavily reliant on cold weather

[winner (n)]

KMD shares down 1 cent on Thursday and another 2 cents today to close at 34.5 cents

Seems tariffs might hurt them quite significantly with Rip Curl and Oboz in North America. About 20% of KMD sales are made their with most imported from Asia counties

Nike and Adidas shares took a decent hit as well today

[winner (n)]

From their announcement the other day Kathmandu have no idea how tariff issues is going to impact sales/margins/profitability

CEO spot on "The new US tariffs are another headwind in an already challenging consumer environment ..... " and knowing how Kathmandu handle headwinds I'd say a +ve outcome is unlikely.

[Red Baron]

From their announcement the other day Kathmandu have no idea how tariff issues is going to impact sales/margins/profitability

CEO spot on "The new US tariffs are another headwind in an already challenging consumer environment ..... " and knowing how Kathmandu handle headwinds I'd say a +ve outcome is unlikely.

Ze zolution eez to bring back ze vounder of zhis business - Kath Mandu.   Let Kath zort eet out!

RB

 

[Shareguy]

KMD generates 19 percent of revenue from the US. FB reckon a possible hit of up to $20m post tax on Trumps tariffs. So yes these are material to an already stretched KMD.

[Waltzing]

ok we will buy some more wet suits...

surf till we cant paddle anymore...

dont think that will cover it though... anyone got an ideas? 

since there hasnt been a Turn the Table upside down  like this one some in the press are calling it the NEW COVID...

cant be that bad surely...

maybe the RBNZ needed to cut 50 or 75... that 25 was pathetic..

[Minimoke]

KMD generates 19 percent of revenue from the US. FB reckon a possible hit of up to $20m post tax on Trumps tariffs. So yes these are material to an already stretched KMD.

Where is Country of Origon of products entering the US. If China, then the tarriff will kill them.

[Waltzing]

its ok the can send the job to here in NZ...

[Shareguy]

Where is Country of Origon of products entering the US. If China, then the tarriff will kill them.

Yes $20m is a big hit. I suspect all will be good in time.

[Minimoke]

its ok the can send the job to here in NZ...

NZ can't change a product from China enough to change country of origon

[Waltzing]

yes was joking of course... rip curl wetties made in the BOP....

sunshine long boards still being made in the BOP one sees... well shaped, laid up and sprayed....

does NZ still have tech courses in sewing ... rubber has to come in from some where..

MADE IN NZ.... Make NZ Great Again...

the can do attitude...

[Red Baron]

yes was joking of course... rip curl wetties made in the BOP....

sunshine long boards still being made in the BOP one sees... well shaped, laid up and sprayed....

does NZ still have tech courses in sewing ... rubber has to come in from some where..

MADE IN NZ.... Make NZ Great Again...

the can do attitude...

Valtzing you are overtheenking zhis.   All you need eez a pair of zcissors, a tube of adhesive, 'Made in NZ' labels  and zome glue sniffers.  Get zhem to cut ze 'Made in China' label off and ztick a 'Made in New Zealand' on in eets place.

Zhen, (here eez ze clever bit) pay our glue sniffers $1,000 per hour to do zhis vork.   Zhat means, vhen ze total cost of producing ze product eez added up, 'adding the label' vill boost NZ content to more zhan 50%.  Zo ve legitimately have a garment/surfboard/shoe vith an NZ content of more zhan 50%, making ze 'NZ made' label justifiable!

Result:  Lower 10% tariffs vor Kathmandu products een ze USA, Glue sniffers off ze streets living a life of luxury, and ze police vreed from dealing vith zuch people, and vree to carry out more rewarding work.  Vin, vin, vin! 

Ze miracle of 'transfer pricing'!

RB

[Left Field]

Latest Trading update....... seems the Group is doing lots proactive monitoring stuff..... GLH

https://www.nzx.com/announcements/453644

[BlackPeter]

Latest Trading update....... seems the Group is doing lots proactive monitoring stuff..... GLH

https://www.nzx.com/announcements/453644

YEP, lots of monitoring. Question is - do they have a strategy to change the course, or is this just hope, pray and document the inevitable?

Discl: I did hold them for a long time, but sold out some months ago. Not my best investment, but must be time now for them to raise ;

[Ferg]

A couple of Directors have been buying lately:

https://api.nzx.com/public/announcement/459704/attachment/453230/459704-453230.pdf

https://api.nzx.com/public/announcement/459736/attachment/453302/459736-453302.pdf