Kathmandu Holdings has revealed that strong sales from Rip Curl and Oboz steadied it through the disruption from the pandemic.
In its FY21 full year results, the Group reports that increased participation in surfing and hiking drove strong performance in the two brands, while Kathmandu suffered under the COVID travel restrictions.
By brand, Rip Curl's sales lifted 55.3% to NZ$490.4 million, Oboz delivered a 44.9% jump in sales to NZ$78.4 million, while Kathmandu's sales slipped 17% to NZ$354 million.
However, across the group, the results were positive, with Kathmandu Holdings reporting a 15.1% increase in sales to NZ$922.8 million for FY21.
Kathmandu Holdings Group CEO and MD Michael Daly said the business is pleased with the results it delivered in an extremely challenging time.
"We are proud of the results we have been able to produce over the last 12 months in the face of ongoing COVID challenges, delivering strong sales and positioning the business for sustained growth.
"Our refreshed group strategy ensures we are focused on the things that matter most as we move into FY22 – building global brands focused on active outdoor activities, investing in digital platforms to provide consumers with a truly world class unified commerce experience, operational excellence, and sustainability [ESG] leadership," he said.
During FY21, the business revealed that online sales accounted for 14.4% of total direct to consumer sales; a four-year compound annual growth rate of 21.9% per annum.
Commenting on each of the brands' performance, Daly said other key factors for growth include a focus on technical product, brand strategy and customer diversification.
"Rip Curl achieved sales above pre-COVID levels in the key regions of North America and Europe during the Northern Hemisphere summer season, benefiting from increased participation in surfing, and reflecting the brand’s technical product focus and strong consumer engagement.
"Rip Curl’s wholesale order books are now significantly above pre-COVID levels.
"While Kathmandu has felt the impacts of COVID related travel restrictions, we were pleased with the early momentum following the brand relaunch in May 2021.
"This relaunch will build on strong brand fundamentals and position Kathmandu to grow to a truly global brand.
"Oboz continues its strong performance, with sales growth reflecting the successful product innovation strategy and diversification of its customer base.
"The forward order book is at its highest level ever, allowing investment to support future growth," he said.
Additionally, earnings growth reflected the group’s management of operating expenses, including the benefit of rent abatements and approximately NZ$15 million annualised restructuring and synergy savings implemented during the onset of the COVID pandemic last financial year.
The business reported statutory NPAT of NZ$63.4 million and underlying NPAT up 110% to NZ$66.3 million.
Kathmandu Holdings' gross margin lifted 40 bps to 58.7%, while underlying EBITDA was up 35.9% to NZ$113.3 million.
The group closed out the period with NZ$37 million in net cash.
In the first weeks of FY22, Kathmandu Holdings' operations are still impacted by Australasian COVID lockdowns and supply chain disruption, with the business expecting that first half FY22 results will be below first half FY21.