Kathmandu and Rip Curl parent company KMD Brands will be dropped from the ASX's top 500 effective prior to the open on March 24 this month.
KMD Brands joined 39 other companies that were dropped from the All Ordinaries index, which means its market capitalisation has fallen below criteria for it to feature in the top 500. The group’s market cap sits at 292.20 million, with a share price of $0.34 per share as of writing.
This comes after KMD Brands reported a challenging 2024, with group sales growth continuing to rightsize through FY25, offset by reported challenges that continue to hit the group’s wholesale channels.
In the last two months of 2024, sales at Rip Curl and Kathmandu lifted by 2.2 per cent and 1.7 per cent respectively, according to a recent trading update. But the positive growth has been dragged back by negative sales growth for Oboz Footwear, down 5.1 per cent in the same time frame, resulting in a total group sales lift of 1.7 per cent in the busy Christmas period.
Despite the positive boost, year-to-date sales in the five months from August to December were down 2.5 per cent for the group, with Kathmandu hitting the slowest sales slip of 0.4 per cent, offset by a 7.7 per cent sales fall for Oboz.
According to Westpac bank, the All Ordinaries (XAO) tracks the 500 largest companies listed on the ASX according to their market capitalisation. Commonly referred to as the All Ords, it is considered the benchmark index for gauging the performance of the broader Australian stock market.
Some of the top fashion and footwear brands listed on the All Ords include Accent Group, Cettire, Premier Investments (Peter Alexander, Smiggle), Super Retail Group (Rebel, Macpac) and Universal Store Holdings.
Meanwhile, Australian underwear brand Step One will enter the All Ordinaries from March 24 following a 6.8 per cent lift in revenue for the first half for FY25. Step One’s market cap sits at 161.54 million, with a share price of $0.88 per share as of writing.
Myer is also moving up, entering the ASX 300 – or top 300 companies on the ASX – joining ten other companies moving into the mix.
Accent Group is also featured in the ASX 300, as well as Lovisa, Premier Investments and Super Retail Group.
Myer’s shift up comes after its strategic deal with Premier Investments, where it acquired Premier’s five apparel brands Just Jeans, Jay Jays, Jacqui E, Portmans, and Dotti, in exchange for 890.5 million shares that were distributed to Premier shareholders.
Myer is yet to release its audited half-year results, but preliminary results indicate that the department store’s total sales were down 0.8 per cent for the first half of FY25.