New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul>
<li>We downgrade KMD Brands (KMD) to NEUTRAL from OUTPERFORM after a disappointing trading update for the four months to November 2023, which was significantly below our, and consensus, expectations.</li>
<li>Sales have declined across all key brands due to: (1) continued weakness in Kathmandu and (2) adverse wholesale performance due to inventory destocking by customers.</li>
<li>Despite a gross margin recovery, and cost out measures taken, operating deleverage contributed to a ~-NZ$16m decline in EBITDA for the four months against the prior year. </li>
</ul>


We downgrade KMD Brands (KMD) to NEUTRAL from OUTPERFORM after a disappointing trading update for the four months to November 2023, which was significantly below our, and consensus, expectations.
Sales have declined across all key brands due to: (1) continued weakness in Kathmandu and (2) adverse wholesale performance due to inventory destocking by customers.
Despite a gross margin recovery, and cost out measures taken, operating deleverage contributed to a ~-NZ$16m decline in EBITDA for the four months against the prior year. 


KMD Brands - Tough Climb Ahead; Downgrade to NEUTRAL

Kathmandu Holdings

KMD Brands - Tough Climb Ahead; Downgrade to NEUTRAL