Ann: KMD Brands Trading Update, page-28

It's undervalued if they execute but not if they continue with the missteps. Like many retailers they've managed to blow up a solid market position in pursuit of marginal growth.

They started by paying too much for Rip Curl.

Still, they have good products and a core customer base that purchases those products regularly but why on earth do they STILL have market updates with increasing store targets. So they can increase their liabilities and risk? A bit of market research would tell them that further increasing their footprint in the medium term is only going to provide marginal growth and reduce profits. If punters want a new jacket they look it up online and head to closest store/shopping centre to try it on. Unless it's in a new high value catchment the additional store just hits the profitability of existing outlets.

Enrol in 101 Retail with Solomon Lew and don't spend another dollar on growth without asking "what would Solly do"?
Rationalise your retail footprint
Refine your offering and brighten up your colours and designs (I know that they want/need to manage inventory but they were sold out of ALL women's coloured GoreTex jackets in all of Victoria by early June and are now discounting the multitude of all black stock).
Get some bright/novelty gear to bring in new customers (Peter Alexander for adventurewear).
Set aside an area for snowboards or similar in selected shops (not skis, not ski gear).
They used to do all these things to grow sales but now they think more stores = more growth (crazy stuff).

Other retailers may have obsolete business models but KMD absolutely has a future if they can get their $hi@ together and take some sensible steps. I'll give them until this time next year to work it out. This update would have been better if NZ wasn't such a basket case.

As for those who think every poor business decision comes down to woke this or woke that (and need to tell everyone repeatedly) I can only assume that too many young children have access to electronic devices these days and/or it's a shame we have grown adults in this country clearly unable to think for themselves.