KMD Brands (KMD) 2025 Earnings Call Presentation

KMD Brands "Next Level" Turnaround Strategy - KMD Brands is implementing a 'Next Level' turnaround strategy focused on brand & product-led offense and efficient processes to deliver sustainable profitability[22, 23, 24] - The strategy includes a cost-out and reallocation program underway, targeting $25 million in savings[46, 47] - The company has identified 28 stores for closure through a fleet review[48] - Growth and cost initiatives have commenced, with senior leadership roles changed[49] Financial Ambition - KMD Brands aims to achieve a gross margin of approximately 60%, an operating expense of less than 50% of sales, an EBITDA margin exceeding 10%, and working capital of less than 16% of sales over the next 3 years[124] - The company targets a net debt to EBITDA ratio between 0.0x and 0.5x[140] - Total capital expenditure is targeted at 3% of sales over the medium-term[140] - The payout ratio for dividends is projected to be in the range of 50-70% of underlying NPAT[140] Brand Strategies - Rip Curl's strategy focuses on the next generation consumer, product distinction, and simplicity[155, 156] - Kathmandu aims to reinforce market leadership and create separation through distinctive product, strong storytelling, and an integrated marketplace[256, 257] - Oboz Footwear's strategic priorities include diversifying channels, focusing on the core consumer, elevating the fast trail category, and unlocking the vault[353]