KMD Brands (KMD) Investor Day 2025 Presentation summary

Strategic transformation and future direction

• Launched 'Next Level' turnaround strategy focused on brand-led growth, operational efficiency, and sustainable profitability, with a $25M cost reset and reallocation program underway, including store closures and leadership changes.

• Emphasizing technical product innovation, speed-to-market, and design to drive consumer relevance and market distinction across Kathmandu, Rip Curl, and Oboz.

• Prioritizing digital acceleration, integrated marketplace management, and channel mix shifts toward higher-margin digital sales.

• International expansion will follow a profitability-first approach, leveraging digital and distribution partners, with a reset in FY26 before scaling in subsequent phases.

• Ongoing focus on simplification, data-driven decision-making, and portfolio-wide capital allocation to optimize shareholder returns.

Financial guidance and operational targets

• Targeting gross margin above 60%, operating expenses below 50% of sales, and EBITDA margin between 10% and 16% over the next three years.

• Aiming to maintain net debt to EBITDA ratio between 0.0x and 0.5x, with capital expenditure at 3% of sales and a dividend payout ratio of 50-70% of underlying NPAT.

• Committed to holding baseline cost inflation below 3% per annum despite external pressures.

• Half-yearly progress scorecards will track financial and operational proof points, including revenue, margin, working capital, digital sales, and team engagement.

• Further updates on progress and financial targets will be provided at the FY25 results announcement.

Brand-specific strategic priorities

• Rip Curl will focus on next-generation consumer connection, product simplification, digital-led growth, and global marketplace integration, with a strong emphasis on women's and youth segments.

• Kathmandu aims to reinforce market leadership through distinctive product innovation, digital-first integrated marketplace, and a reset international strategy prioritizing profitability.

• Oboz will drive growth by expanding core and fast trail categories, diversifying channels, leveraging digital, and forming strategic partnerships, with a refined product and channel mix by FY28.

• All brands are committed to B Corp recertification by the end of 2026, reinforcing sustainability and social responsibility.

• Leadership changes and a renewed focus on culture and capability are expected to enhance execution and brand storytelling.