KMD Brands Limited ( (AU:KMD) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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KMD Brands’ share price climbed after the company reported robust direct-to-consumer sales over the key Black Friday and Christmas trading periods, with strong same-store growth at its Kathmandu chain and improving results at Rip Curl and Oboz. These gains lifted overall group revenue and supported stable forward orders, reassuring investors about near-term demand. Although heavy discounting and inventory clearance hurt gross margins, management still expects a solid year-on-year improvement in underlying EBITDA, signalling better profitability ahead. The company also moved to extend and restructure its debt facilities and amend covenants, and while net debt is expected to rise partly because of a weaker New Zealand dollar, the steps suggest a cautious but gradually strengthening financial position.
More about KMD Brands Limited
YTD Price Performance: 0%
Average Trading Volume: 201,728
Technical Sentiment Signal: Strong Sell
Current Market Cap: A$169.3M
For further insights into KMD stock on TipRanks’ Stock Analysis page.
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