Latest news with #KMDBrands
Perth Now
8 hours ago
- Business
- Perth Now
Trump slump smashes major Aussie company
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. Luxury retailer Cettire is leading a slump in ASX-listed fashion stocks this year. Supplied Credit: Supplied City Chic has warned US tariff policies could impact its earnings. Supplied Credit: Supplied The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. Graphic Aussie Fashion Stocks - Jan 2-June 23 (2) At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. KMD Brands, which owns Kathmandu, has warned tariffs could strip out $1m in earnings for FY25. NewsWire / Gaye Gerard Credit: News Corp Australia 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
West Australian
4 days ago
- Business
- West Australian
Kathmandu owner KMD Brands flags earnings slump as warm weather dents puffer jacket sales
Australia's unseasonably warm autumn has dampened sales for Kathmandu owner KMD Brands, warning full-year earnings could fall by as much as $NZ35 million ($32.3m). KMD, which also owns surfwear brand Ripcurl and footwear label Oboz, expects underlying earnings to be in the range of $NZ15m to $NZ25m, compared with the $NZ50m reported last year. Kathmandu was the worst performer for the group, with sales slumping 6.4 per cent in the four months to May. In a trading update to the market on Thursday, the group said unseasonably warm weather in Australia had a material adverse impact on Kathmandu's insulation product category, which includes its puffer jackets. 'While the volatility of Kathmandu's sales performance is frustrating, we acknowledge that unseasonably warm weather in Australia, including Victoria's warmest autumn on record, has negatively impacted sales,' group chief executive Brent Scrimshaw said. Woolworths boss Amanda Bardwell last month signalled similar trends, saying clothing was particularly challenging for its long-struggling discount department store Big W with a slower start to autumn and winter sales. But KMD on Thursday said the recent change to cooler weather in both NZ and Australia had reignited sales momentum at Kathmandu, with the first few weeks of June delivering a 13.2 per cent sales growth year-on-year. School holidays and the start of the ski season offered further opportunities to continue the momentum for the remainder of the financial year, it said. 'Kathmandu's significant sales improvement, including strong online momentum in recent weeks, reinforces our enduring brand health and strengthens our confidence in the future growth opportunity,' Mr Scrimshaw said. KMD said it continued to monitor the 'fluid US tariff situation' and anticipates a $NZ1m impact on its earnings for the 2025 financial year. For the 10 months to the end of May, group sales were down 0.5 per cent. Sales at Oboz were 4 per cent lower, while Rip Curl was the outlier, posting a modest 0.4 per cent growth. 'The group is proactively working on a range of initiatives to unlock future growth opportunities across the portfolio, address short-term market challenges and improve medium to long-term performance and value for shareholders,' Mr Scrimshaw said. The online channel continues to be a key growth opportunity, with sales up 10.7 per cent in the 10 months to the end of May. 'Kathmandu recently upgraded its online trading platform, with a significant improvement to the consumer journey,' KMD said. 'Since implementation in May, online sales have been 26.1 per cent above last year, with the recent Australian public holiday being the highest online sales day for over two years.' RBC Capital Markets analyst Wei Weng-Chen said KMD's earnings guidance was 50 per cent below the $NZ39.6m consensus expectations. KMD shares were down 1.9 per cent to 26¢ just before midday on Thursday. They are off 32 per cent this year so far.
Yahoo
28-03-2025
- Business
- Yahoo
Earnings Release: Here's Why Analysts Cut Their KMD Brands Limited (NZSE:KMD) Price Target To NZ$0.49
Shareholders might have noticed that KMD Brands Limited (NZSE:KMD) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.7% to NZ$0.36 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.0%to hit NZ$471m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Following last week's earnings report, KMD Brands' six analysts are forecasting 2025 revenues to be NZ$997.8m, approximately in line with the last 12 months. Statutory losses are forecast to balloon 94% to NZ$0.005 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$990.8m and earnings per share (EPS) of NZ$0.0057 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit. Check out our latest analysis for KMD Brands With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.7% to NZ$0.49, with the analysts signalling that growing losses would be a definite concern. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values KMD Brands at NZ$0.60 per share, while the most bearish prices it at NZ$0.40. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that KMD Brands' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 6.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than KMD Brands. The most important thing to take away is that the analysts are expecting KMD Brands to become unprofitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KMD Brands' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for KMD Brands going out to 2027, and you can see them free on our platform here. You can also see whether KMD Brands is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
There Are Reasons To Feel Uneasy About KMD Brands' (NZSE:KMD) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Having said that, from a first glance at KMD Brands (NZSE:KMD) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for KMD Brands: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.014 = NZ$16m ÷ (NZ$1.4b - NZ$243m) (Based on the trailing twelve months to July 2024). Therefore, KMD Brands has an ROCE of 1.4%. Ultimately, that's a low return and it under-performs the Specialty Retail industry average of 19%. View our latest analysis for KMD Brands In the above chart we have measured KMD Brands' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for KMD Brands . When we looked at the ROCE trend at KMD Brands, we didn't gain much confidence. Around five years ago the returns on capital were 16%, but since then they've fallen to 1.4%. Given the business is employing more capital while revenue has slipped, this is a bit concerning. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se. In summary, we're somewhat concerned by KMD Brands' diminishing returns on increasing amounts of capital. Long term shareholders who've owned the stock over the last five years have experienced a 46% depreciation in their investment, so it appears the market might not like these trends either. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. KMD Brands could be trading at an attractive price in other respects, so you might find our on our platform quite valuable. While KMD Brands may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
Investors in KMD Brands (NZSE:KMD) have unfortunately lost 75% over the last five years
Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Anyone who held KMD Brands Limited (NZSE:KMD) for five years would be nursing their metaphorical wounds since the share price dropped 86% in that time. And we doubt long term believers are the only worried holders, since the stock price has declined 43% over the last twelve months. But it's up 6.3% in the last week. While a drop like that is definitely a body blow, money isn't as important as health and happiness. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. See our latest analysis for KMD Brands There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over five years KMD Brands' earnings per share dropped significantly, falling to a loss, with the share price also lower. At present it's hard to make valid comparisons between EPS and the share price. But we would generally expect a lower price, given the situation. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of KMD Brands' earnings, revenue and cash flow. We've already covered KMD Brands' share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for KMD Brands shareholders, and that cash payout explains why its total shareholder loss of 75%, over the last 5 years, isn't as bad as the share price return. KMD Brands shareholders are down 43% for the year, but the market itself is up 9.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 12% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid. KMD Brands is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealander exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
