KMD launches $65m capital raise, closes 21 stores as earnings remain under pressure

31st March 2026 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Christchurch-headquartered KMD Brands has launched a fully underwritten equity raising of about $65.3m

The offer comprises a placement to institutional investors of around $6.8m and an entitlement offer expected to raise roughly $58.5m, with both components underwritten by Goldman Sachs New Zealand and Forsyth Barr.

The retailer, which has 608 stores globally and owns the Kathmandu, Oboz and Rip Curl brands, said new shares will be issued at $0.06 each, with up to 974.9 million shares available under the entitlement offer if fully subscribed.

Dual-listed KMD entered a trading halt and subsequent voluntary suspension last week to facilitate the capital raising and allocation process, citing the need to maintain a fair and orderly market while the institutional component was completed.

“Proceeds from the offer will be used to reduce KMD’s net debt position and strengthen the balance sheet, and in conjunction with the refinanced debt facility provide a stable balance sheet to enable execution of KMD’s ‘Next Level’ strategy,” stated KMD’s offer document.

The capital raising comes alongside the company’s interim result, which showed revenue of $505.45m for the six months to 31 January 2026, up 7.3% on the previous corresponding period.

The group reported a net loss of $13.08m for the six months, which was an improvement on the $20.70m loss it reported for the same period a year earlier.

No interim dividend was paid.

In its investor presentation, the retailer said it was making progress on its three-year ‘Next Level’ strategy, which was launched mid-2025 aimed at turning around falls in sales and profitability.

Under the plan, KMD said it was on track to make savings of around $27.5m for FY26 and had closed 15 stores, including 4 Kathmandu and 7 Rip Curl outlets among the stores that it owns, with a further 6 to shut by September 2027. KMD has a mix of owned and licensed stores.

KMD said it continued to make an “ongoing evaluation of stores against clear criteria to determine the optimal path for our store portfolio”.

It forecast lease cost savings of $5.8m from the 21 closed stores.