Kathmandu Holdings has revealed that its first quarter F21 sales were bolstered by the successful acquisition of Rip Curl.
In a trading update, the business reported that group total sales for the first quarter ended 31 October 2020 were +72% above last year, with Rip Curl flagged as an instrumental part of the results.
"We are realising the benefit of a diversified Group, with strong performance in summer weighted product categories for Rip Curl in all key geographies, following successful winter trading for Kathmandu," Kathmandu Holdings CEO Xavier Simonet said.
"Rip Curl’s strong sales performance in its key markets of Australia, Europe and North America is very pleasing.
"It highlights the strength of Rip Curl’s global brand and innovative products as more people take to surfing.
"At broadly pre-COVID-19 levels, wholesale sell-in for Rip Curl for the second half year is also encouraging," he said.
According to the update, group direct to consumer same store sales, including online, for the 16 full weeks ended 15 November 2020 were at -7.6% adjusted for lockdown closures, with Rip Curl at +26.8% and Kathmandu declining by -26.8% (-24.1% unadjusted, with Rip Curl -1.7% and Kathmandu -37.7%).
Meanwhile, the business' online sales for the period were +37.0% above last year, while wholesale sales for the first quarter were -14.4% below last year.
During the period, the business' 60 Greater Melbourne stores were closed for a significant amount of time, while 14 Auckland stores were closed for two weeks.
According to the report, airport stores in Australia as well as Rip Curl stores in Hawaii and Europe are still heavily impacted by either COVID-19 related travel restrictions or government mandated lockdowns and closures.
Simonet added that the upcoming Christmas trading period will determine the outcome of the Group's half year results.
"As for Kathmandu, camping and footwear categories have over-performed, but have not compensated for the impact of COVID-19 with low footfall in CBD and tourist locations as well as lower travel-related purchases.
"Oboz’s performance has been robust with strong sales to key accounts, and the forward order book tracking above pre-COVID-19 levels.
"The Group’s half year result will be dependent on the key Christmas trading period.
"The impact of COVID-19 on consumer sentiment remains a risk.
"[However], the Group continues to maintain a strong balance sheet and liquidity position, allowing it to respond to current trading conditions and pursue attractive growth opportunities that may arise.
"The Group intends to resume dividend payments subject to market conditions and trading performance following first half results," he said.