KMD -9.28%: the NZ based retailer slipped to a 9-month low after flagging a soft finish to the 31 July year-end. KMD, which owns Kathmandu and Rip Curl, said they expect a record year for sales of $NZ1.1b, up from last year’s $980m but around 5% short of expectations. This fed into a larger miss on EBITDA expectations with the company expecting $NZ105-110m, around 15% short of market expectations. The announcement pointed to a slow start to Q4 with weakening consumer spend and a warm winter weighing on Kathmandu sales. We like the KMD business, however, it is likely to take some time before the market adjusts expectations to realistic levels after today’s update.
MM is neutral KMD
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