Outdoor goods retailer Kathmandu is reaping the rewards of its acquisition of Rip Curl, with total group sales for the six months ended January up 12 percent on last year.
Kathmandu acquired the surf and sports brand in 2019 for $368 million, and on a same-store basis adjusted for lockdown closures sales were up 21 percent.
Group chief executive Xavier Simonet said despite Covid-19 disruption Rip Curl achieved substantial sales growth, with strong wholesale orders for the second half year.
“Rip Curl’s record first half performance highlights the strength of its brand and quality technical products. Rip Curl’s direct to consumer business will now begin the Northern Hemisphere summer with strong momentum.
“Forward orders for the Rip Curl wholesale business are above pre-Covid-19 levels, with encouraging early indications for future seasons.”
He said Kathmandu also saw robust sales, due to a renewed interest in local outdoor activities within Australia and New Zealand.
“However, its performance was heavily impacted by low demand for insulation and rainwear resulting from the lack of international travellers to the northern hemisphere.”
Adjusted sales were down 30 percent.
Simonet said the results proved the importance of the group’s diversity.
The board would continue to seek a replacement for Simonet, who signalled his intention to step down in November.
The company would release its full interim result on 23 March.