KMD Brands (ASX:KMD) reported a 5.2% jump in third-quarter sales, helped by strength in its flagship Kathmandu segment, even as its footwear business Oboz saw a decline amid geopolitical and market tensions, according to a Wednesday filing with the Australian bourse.
The sports company saw a 12% rise in its outdoor clothing brand Kathmandu in the three months ended April 26, despite a net reduction of seven stores year-on-year, as demand grew for its improved product lines in Australia and New Zealand.
Meanwhile, Oboz had nearly a 9% decline in the quarter, held back by shipment timing. Sales are expected to return to growth in the fourth quarter on the back of new product launches and online growth.
The company is on track to deliver NZ$27.5 million in cost savings in fiscal 2026. However, volatility in global currencies is set to impact its underlying operating expenses, it added.
Its board is also conducting a business review to improve shareholder returns. The review, expected to complete on or before its annual results in September, will assess its capital structure, portfolio mix and other value-creation opportunities.