KMD BRANDS LIMITED (KMD)
Share Price Analysis and Chart

28/07/2026

1

Buy

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UBS believes KMD Brands' investment case has shifted from balance sheet concerns to earnings delivery following last quarter's highly dilutive equity raising.

The broker notes the stock trades on an FY27 price/earnings multiple of around 7x, well below its long-term average of 10x, suggesting an attractive valuation.

Website traffic at Kathmandu improved during the quarter alongside stronger Google search interest in hiking. The analysts believe this signals a turnaround in brand engagement and market share after prolonged weakness.

UBS cautions its latest consumer survey indicates spending intentions in New Zealand's outdoor category remain broadly unchanged over the next 12 months.

Following a 1:25 share consolidation on July 1, UBS has a NZ$3.50 target and maintains its Buy rating.

FORECAST
UBS forecasts a full year FY26 dividend of 0.00 cents.
UBS forecasts a full year FY27 dividend of 0.00 cents.

27/07/2026

3

Neutral

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Jarden retains a Neutral rating for KMD Brands with its target price reduced to NZ$2.05 from a 25:1 share consolidation-adjusted NZ$3.25 following a mixed trading update.

Management guided to an FY26 sales decline of -5% year-on-year, alongside pre-IFRS EBITDA between NZ$38m and NZ$41m, representing a 3.8% margin and a 200bps margin expansion.

Net debt projections expanded to between NZ$63m and NZ$66m, reflecting a NZ$12m year-on-year increase driven by working capital requirements despite a recent equity raise.

Whilst Kathmandu brand momentum remains positive, slowing growth at Rip Curl and unfavourable Australian weather conditions continue to weigh on top-line performance, commentary highlights.

The analyst lowers earnings forecasts by -35%, noting the margin recovery thesis remains intact despite broader operational headwinds.