On a Thursday in early September, KMD Brands, the company that carries the Kathmandu and Rip Curl names, confirmed that at least twenty-one of its stores will close as part of a plan to trim $25 million in yearly costs. The retreat comes as a business built on outdoor gear and surf culture reckons with a six-month loss, $62.9 million in debt, and shoppers who have grown weary of looking much like one another. Its new chief executive has concluded that the brands hold more promise than the company has yet drawn out of them, and the coming full-year results will show whether that diagnosis can b
KMD Brands to Close at Least 21 Stores as Kathmandu and Rip Curl Owner Pursues $25M Cost-Cutting Reset
The potential of our brands is far greater than what we're delivering today
Mark
Twenty-one stores out of more than 328. Is that a big cut?
Mimi
It's roughly six or seven per cent of the network, but the company says it's still reviewing the portfolio, so 21 is the number identified so far, not necessarily the final one.
Luke
Right, and we don't know which stores, or in which countries. The spokeswoman said only that they span Kathmandu and Rip Curl globally.
Mark
Why is this happening now?
Mimi
Debt and losses. An $18.6 million loss for the half-year, $34.17 million the year before, and a talk with lenders about covenants on $62.9 million of debt.
Luke
Worth noting the covenant amendment was a request to lenders, and the reporting doesn't say what the new terms are.
Mark
The CEO talks about a sea of sameness. What's he getting at?
Mimi
Products that don't stand out. He wants more iconic items and faster design-to-shelf turnaround.
Luke
That's his diagnosis after a few months in the job. Whether it's right is something we can't judge from this report.
Mark
And the $25 million in savings?
Mimi
That's the company's target for annual cost cuts. How much comes from store closures versus other measures isn't broken down.
Luke
Exactly. September 24 results will show the past year, not whether the reset is working. That verdict comes later.
Il Polso
- At least 21 of KMD's more than 328 company-owned stores are set to close, and the number may climb as the portfolio review continues.
- A $18.6 million loss over six months and $62.9 million in debt have forced the company to ask its lenders to loosen financial covenants.
- Sales slipped as mild Australian weather kept buyers away from insulated favourites like Kathmandu's puffer jackets.
- Chief executive Brent Scrimshaw is pushing the "Next Level" reset, betting on faster product cycles, sharper design and genuinely iconic innovation.
- More than ten senior roles have changed hands in 18 months, and investors have cautiously lifted the share price while it remains down nearly 40 per cent this year.
- All eyes now turn to the full-year results on September 24, the first hard measure of whether the turnaround is gaining traction.
On a Thursday in early September, KMD Brands, the company that carries the Kathmandu and Rip Curl names, confirmed that at least twenty-one of its stores will close as part of a plan to trim $25 million in yearly costs. The retreat comes as a business built on outdoor gear and surf culture reckons with a six-month loss, $62.9 million in debt, and shoppers who have grown weary of looking much like one another. Its new chief executive has concluded that the brands hold more promise than the company has yet drawn out of them, and the coming full-year results will show whether that diagnosis can be turned into recovery.
On Thursday, KMD Brands, the company behind Kathmandu and Rip Curl, confirmed it will close at least 21 stores. The closures are part of a transformation strategy aimed at cutting $25 million in annual costs, and they arrive alongside a reshuffle at the top of the business.
The 21 stores span the global networks of both brands, and they are only the ones identified so far, so the final count could be higher. The company is also not simply shrinking. It plans new Rip Curl outlets along the Mediterranean coasts of Italy, Spain and France, and three Kathmandu concept stores in Australia and New Zealand later this year.
The pressure behind these moves is real. KMD lost $18.6 million in the six months to January 31, and earlier this year it had to ask lenders to amend covenants tied to its $62.9 million in debt. Warmer weather meant fewer sales of insulated products, and sales dipped in the first ten months of the year.
Chief executive Brent Scrimshaw, who joined in March, spent his early months listening to staff and retail partners. His verdict was candid: the brands are capable of far more than they are delivering, and too many products have blurred into a "sea of sameness." His "Next Level" plan focuses on innovation, speed to market, and design.
Investors responded with cautious optimism, lifting shares 4.6 per cent, though they remain well down this year. The real answer comes on September 24, when the full-year results will show where the reset truly stands.
On Thursday, KMD Brands, the company behind Kathmandu and Rip Curl, confirmed it will close at least 21 stores. The closures are one part of a transformation strategy aimed at cutting $25 million in annual costs, and they come alongside changes at the top of the business.
A company spokeswoman said the 21 stores sit across the global networks of both Kathmandu and Rip Curl. KMD, which is dual-listed and also owns the Oboz Footwear brand, said it is reviewing its portfolio of more than 328 company-owned stores. The 21 are those it has already identified, so the final number could be higher.
The company is not only shrinking. It plans to open new Rip Curl outlets along the Mediterranean coasts of Italy, Spain and France, and three Kathmandu concept stores in Australia and New Zealand later this year.
The financial backdrop explains the urgency. KMD lost $18.6 million in the six months to January 31, after a loss of $34.17 million the year before. Earlier this year it had to approach its lenders to amend financial covenants tied to its $62.9 million in debt. In June it warned that sales were down 0.5 per cent over the first 10 months of the 2024/25 year, partly because warmer Australian weather meant fewer sales of insulated products such as Kathmandu's well-known puffer jackets.
Chief executive Brent Scrimshaw, who started in March, said he has spent the months since listening to KMD's teams and retail partners. His conclusion was blunt: the potential of the brands is far greater than what the company is delivering today. He pointed to an insufficient cadence of iconic product and innovation, and to products caught in what he called a "sea of sameness" with little to set them apart.
The plan he is leading, called "Next Level", centres on refocusing on product innovation and investing in speed-to-market, design and style.
Leadership has also been reshaped. More than 10 roles in the senior team have changed over the past 18 months. Chairman David Kirk said the executive changes were deliberate and designed to strengthen the group's core capabilities.
Investors responded modestly. In Thursday morning trading KMD shares rose 4.6 per cent to 23 cents, though they remain down 39.5 per cent so far in 2025.
The next test arrives on September 24, when KMD releases results for the 12 months to July 31. Those figures will give the first full-year picture of where the business stands as the reset begins.
Citazioni salienti
The potential of our brands is far greater than what we're delivering today.— Brent Scrimshaw, KMD Brands chief executive
We have deliberately made significant executive team changes to enhance the core capabilities of the group.— David Kirk, KMD Brands chairman
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