KMD Brands had a strong 2023 financial year,with sales jumping 12.6 per cent to $1 billion,although net profit dipped slightly by 0.6 per cent to $36.6 million.

But Australia’s weather has been warmer than expected,impacting sales at the company that is known for puffer jackets and camping and hiking gear.

“Seasonality is a big thing in fashion,” said consultant and Retail Doctor chief executive Brian Walker,who said brands such as Kathmandu were more at the mercy of the weather than other brands.

The outdoor gear retailer also faces fierce competition,with department stores discounting aggressively and many online brands vying for attention,Walker said.

“In a slightly contracted market like this,absolute traffic volumes may be consistent with previous periods;however,customers are trading down,” he said.

“Have they got the depth in range to accommodate a lower-ticket item?”

Retail analyst Craig Woolford said that KMD Brands’ lower trading figures were also due to its exposure to the New Zealand retail market,which he said had suffered more than Australia’s.

But he also pointed to the fact that KMD’s gross margins had improved,with Daly stating that operating costs were being actively managed and were a key focus of the business.

“They may have been more sophisticated around their promotions,but retailers generally have had steady,stable to improving gross margins,which does suggest that discounting levels are similar,if not less,than a year ago,” said Woolford.

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