# KMD Brands (KMD.AU)

Canonical: https://gigainvestors.com/s/KMD.AU

Analysis as of: 2026-10-16T07:54:59.658Z. Financial observations: FY2012–FY2026.

Listing currency: AUD. Reporting currency: NZD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 1.60 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 3

- Operating margin variation: 0.45×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.15×

- FY2019: 0.15×

- FY2020: 0.05×

- FY2021: 0.19×

- FY2022: 0.17×

- FY2023: 0.18×

- FY2024: 0.15×

- FY2025: 0.09×

- FY2026: 0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 13.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.3%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 13.6 pp

- Typical gross margin (annual median): 58.8%

- Recent gross margin (lower of latest and 3-year median): 45.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 1.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 18.6%

- FY2018: 18.9%

- FY2019: 22.0%

- FY2020: 3.0%

- FY2021: 18.9%

- FY2022: 13.3%

- FY2023: 15.3%

- FY2024: 13.0%

- FY2025: 9.1%

- FY2026: 0.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: NZD -412M

- Net income, five-year total: NZD -422M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 5.0 pp

- Working capital / revenue, final three-year average: 23.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: NZD 59M

- FY2023: NZD -25M

- FY2024: NZD -13M

- FY2025: NZD -139M

- FY2026: NZD -294M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.9% vs 9.1%

- Per-share earnings: 4.62 to -3.25 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 24.4%

- Ordinary dilution, 5-year annual growth: 20.5%

- Market cap gain: NZD 126M

- Cumulative retained earnings: NZD -472M

- Diluted shares, 10-year annual growth: 24.4%

- Diluted shares, 5-year annual growth: 20.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: NZD -7.87

- Per-share value, starting three-year median: NZD 4.62

- Per-share value, ending three-year median: NZD -3.25

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: NZD 445M

- Cumulative net income, 10 years: NZD -204M

- ROIC, first three-year median: 18.9%

- ROIC, last three-year median: 9.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: NZD 4.62

- FY2018: NZD 5.35

- FY2019: NZD 2.00

- FY2020: NZD 0.29

- FY2021: NZD 2.22

- FY2022: NZD 1.26

- FY2023: NZD 1.23

- FY2024: NZD -1.72

- FY2025: NZD -3.25

- FY2026: NZD -4.83

### accounting: pass

- Sloan accruals: -52.3%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.54×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.7%

- FY2018: -4.1%

- FY2019: -0.7%

- FY2020: -10.3%

- FY2021: -8.2%

- FY2022: -7.2%

- FY2023: -7.3%

- FY2024: -13.5%

- FY2025: -16.4%

- FY2026: -52.3%

## Holders

## Price story

Up 245% since Oct 2023 · sales -10.9%

Story as of 2026-10-16T10:00:13.853Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales -10.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: NZD 445M 

- FY2018: NZD 497M 

- FY2019: NZD 546M 

- FY2020: NZD 797M 

- FY2021: NZD 923M 

- FY2022: NZD 980M 

- FY2023: NZD 1.1B 

- FY2024: NZD 979M 

- FY2025: NZD 989M 

- FY2026: NZD 881M 

### Gross margin · FY2026

gross margin 45.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 62.0% 

- FY2018: 63.4% 

- FY2019: 60.9% 

- FY2020: 58.1% 

- FY2021: 58.7% 

- FY2022: 58.9% 

- FY2023: 59.1% 

- FY2024: 58.4% 

- FY2025: 56.5% 

- FY2026: 45.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel manufacturing; annual sales are NZD 880.8 million.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2026-07-31 (filed 2026-10-16T07:54:59.658Z); FY2026: revenue 880840419; grossProfit 397899305; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KMD.AU: KMD Brands Limited, together with its subsidiaries, designs, markets, wholesales, and retails apparel, footwear, and equipment for surfing and the outdoors under the Kathmandu, Rip Curl, and Oboz brand names. The company also offers apparel, footwear, and equipment for outdoor travel and adventure, as well as designs, wholesales, and online retails outdoor footwear. It operates in New Zealand, Australia, North America, Europe, Southeast Asia, Japan, and Brazil, and internationally. The company was formerly known as Kathmandu Holdings Limited and changed its name to KMD Brands Limited in March 2022. KMD Brands Limited was founded in 1987 and is based in Christchurch, New Zealand.

### Why customers stay

Margins ranged from 45.2% to 58.4% during 2024–26; it earns 14.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2024-07-31 (filed 2026-10-16T07:54:59.658Z); FY2024: grossProfit / revenue = 58.4%.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2025-07-31 (filed 2026-10-16T07:54:59.658Z); FY2025: grossProfit / revenue = 56.5%.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2026-07-31 (filed 2026-10-16T07:54:59.658Z); FY2026: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:54:59.658Z); 10-year return on capital observations [[2017,0.1856882473561762],[2018,0.18939954520863794],[2019,0.22029060324361602],[2020,0.030129525888471863],[2021,0.18897375303354033],[2022,0.1326727735825169],[2023,0.15313295330947996],[2024,0.1296921841450675],[2025,0.09050319631882894],[2026,0.007191051341331613]]; median 0.14290286344599842. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 59% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:54:59.658Z); Gross margin observations: [[2021,0.5869383349660595],[2022,0.588621986891229],[2023,0.5910684917597013]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 9 of 10 years.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2017-07-31 (filed 2026-10-16T07:54:59.658Z); FY2017: growth capex 0; upkeep 13276000; owner earnings 38589000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2018-07-31 (filed 2026-10-16T07:54:59.658Z); FY2018: growth capex 1736000; upkeep 14958000; owner earnings 50532000. Growth capex / owner earnings = 0.03435446845563207.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2019-07-31 (filed 2026-10-16T07:54:59.658Z); FY2019: growth capex 424000; upkeep 15272000; owner earnings 57633000. Growth capex / owner earnings = 0.007356896222650218.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2020-07-31 (filed 2026-10-16T07:54:59.658Z); FY2020: growth capex 0; upkeep 19862000; owner earnings 32283400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2021-07-31 (filed 2026-10-16T07:54:59.658Z); FY2021: growth capex 9499000; upkeep 26054000; owner earnings 7211800. Growth capex / owner earnings = 1.3171468981391607.

- Source: https://eodhd.com/api/fundamentals/KMD.AU.json#2022-07-31 (filed 2026-10-16T07:54:59.658Z); FY2022: growth capex 0; upkeep 32833000; owner earnings 58717600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:54:59.658Z); Dividend observations: [[2017,24179000],[2018,27208000],[2019,33883000],[2020,27209000],[2021,14180000],[2022,42995000],[2023,43366000],[2024,22506000],[2025,1281000],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KMD.AU SharesStats.PercentInsiders = 35.937000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:54:59.658Z); Closing price 1.595 AUD; reporting-to-trading FX 0.8124078517533463; FY2026 annual sales per share 12.237804006835518; price multiple 0.16042907584738045. FY2026 cash earnings/share -4.082192783805938. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 0.81 per share

- 2016-11: AUD 0.76 per share

- 2016-12: AUD 0.80 per share

- 2017-01: AUD 0.77 per share

- 2017-02: AUD 0.81 per share

- 2017-03: AUD 0.77 per share

- 2017-04: AUD 0.80 per share

- 2017-05: AUD 0.83 per share

- 2017-06: AUD 0.83 per share

- 2017-07: AUD 0.90 per share

- 2017-08: AUD 0.91 per share

- 2017-09: AUD 0.93 per share

- 2017-10: AUD 0.91 per share

- 2017-11: AUD 0.94 per share

- 2017-12: AUD 0.94 per share

- 2018-01: AUD 0.94 per share

- 2018-02: AUD 0.91 per share

- 2018-03: AUD 0.96 per share

- 2018-04: AUD 1.05 per share

- 2018-05: AUD 0.96 per share

- 2018-06: AUD 1.15 per share

- 2018-07: AUD 1.21 per share

- 2018-08: AUD 1.29 per share

- 2018-09: AUD 1.28 per share

- 2018-10: AUD 1.09 per share

- 2018-11: AUD 1.08 per share

- 2018-12: AUD 1.11 per share

- 2019-01: AUD 0.97 per share

- 2019-02: AUD 1.06 per share

- 2019-03: AUD 0.91 per share

- 2019-04: AUD 0.93 per share

- 2019-05: AUD 0.91 per share

- 2019-06: AUD 0.88 per share

- 2019-07: AUD 0.88 per share

- 2019-08: AUD 1.04 per share

- 2019-09: AUD 1.19 per share

- 2019-10: AUD 1.27 per share

- 2019-11: AUD 1.26 per share

- 2019-12: AUD 1.40 per share

- 2020-01: AUD 1.28 per share

- 2020-02: AUD 1.27 per share

- 2020-03: AUD 0.43 per share

- 2020-04: AUD 0.45 per share

- 2020-05: AUD 0.59 per share

- 2020-06: AUD 0.63 per share

- 2020-07: AUD 0.64 per share

- 2020-08: AUD 0.70 per share

- 2020-09: AUD 0.70 per share

- 2020-10: AUD 0.67 per share

- 2020-11: AUD 0.71 per share

- 2020-12: AUD 0.72 per share

- 2021-01: AUD 0.73 per share

- 2021-02: AUD 0.73 per share

- 2021-03: AUD 0.75 per share

- 2021-04: AUD 0.82 per share

- 2021-05: AUD 0.90 per share

- 2021-06: AUD 0.89 per share

- 2021-07: AUD 0.80 per share

- 2021-08: AUD 0.80 per share

- 2021-09: AUD 0.93 per share

- 2021-10: AUD 0.92 per share

- 2021-11: AUD 0.86 per share

- 2021-12: AUD 0.87 per share

- 2022-01: AUD 0.79 per share

- 2022-02: AUD 0.74 per share

- 2022-03: AUD 0.77 per share

- 2022-04: AUD 0.77 per share

- 2022-05: AUD 0.67 per share

- 2022-06: AUD 0.61 per share

- 2022-07: AUD 0.60 per share

- 2022-08: AUD 0.58 per share

- 2022-09: AUD 0.55 per share

- 2022-10: AUD 0.59 per share

- 2022-11: AUD 0.61 per share

- 2022-12: AUD 0.59 per share

- 2023-01: AUD 0.59 per share

- 2023-02: AUD 0.62 per share

- 2023-03: AUD 0.61 per share

- 2023-04: AUD 0.63 per share

- 2023-05: AUD 0.62 per share

- 2023-06: AUD 0.56 per share

- 2023-07: AUD 0.52 per share

- 2023-08: AUD 0.48 per share

- 2023-09: AUD 0.49 per share

- 2023-10: AUD 0.46 per share

- 2023-11: AUD 0.44 per share

- 2023-12: AUD 0.43 per share

- 2024-01: AUD 0.40 per share

- 2024-02: AUD 0.30 per share

- 2024-03: AUD 0.32 per share

- 2024-04: AUD 0.29 per share

- 2024-05: AUD 0.24 per share

- 2024-06: AUD 0.21 per share

- 2024-07: AUD 0.25 per share

- 2024-08: AUD 0.32 per share

- 2024-09: AUD 0.29 per share

- 2024-10: AUD 0.24 per share

- 2024-11: AUD 0.23 per share

- 2024-12: AUD 0.24 per share

- 2025-01: AUD 0.22 per share

- 2025-02: AUD 0.22 per share

- 2025-03: AUD 0.21 per share

- 2025-04: AUD 0.19 per share

- 2025-05: AUD 0.17 per share

- 2025-06: AUD 0.15 per share

- 2025-07: AUD 0.15 per share

- 2025-08: AUD 0.13 per share

- 2025-09: AUD 0.15 per share

- 2025-10: AUD 0.15 per share

- 2025-11: AUD 0.15 per share

- 2025-12: AUD 0.15 per share

- 2026-01: AUD 0.15 per share

- 2026-02: AUD 0.13 per share

- 2026-03: AUD 0.09 per share

- 2026-04: AUD 0.05 per share

- 2026-05: AUD 0.07 per share

- 2026-06: AUD 1.60 per share

- 2026-07: AUD 1.53 per share

- 2026-08: AUD 1.41 per share

- 2026-09: AUD 1.48 per share

- 2026-10: AUD 1.60 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 35.70 per share, central AUD 40.62 per share, high AUD 47.17 per share

- FY2018: low AUD 36.49 per share, central AUD 41.28 per share, high AUD 47.65 per share

- FY2019: low AUD 14.59 per share, central AUD 16.60 per share, high AUD 19.27 per share

- FY2020: low AUD 27.72 per share, central AUD 30.69 per share, high AUD 34.65 per share

- FY2021: low AUD 28.59 per share, central AUD 32.04 per share, high AUD 36.64 per share

- FY2022: low AUD 19.66 per share, central AUD 22.17 per share, high AUD 25.51 per share

- FY2023: low AUD 14.72 per share, central AUD 16.64 per share, high AUD 19.20 per share

- FY2024: low AUD 2.75 per share, central AUD 3.07 per share, high AUD 3.51 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.