# KMD - KMD Brands



## dan-o (21 October 2009)

This has been confirmed and people can apply after 27th october. Anyone know much about this business? How does it compare to the Myer IPO?


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## Rainmaker2000 (21 October 2009)

*Re: Kathmandu IPO*

I'm trying not to share too much on good stocks these days, but can't help myself.........

Kathmandu looks generally like a very desirable business being sold at a bit over a fair price.....but perhaps at a desirable price considering its apparent above average investment characteristics.....I'm looking forward to reading the prospectus

WHICH MEANS ITS NOTHING LIKE MYER...HEHEHE

Kathmandu is an iconic brand which captures a sustainable premium for its product........a premium which it captures fully with its vertically integrated business model

The above average characteristic of Kathmandu lies in its opportunity to leverage the above facts into simply "more stores"

What makes retail a potential unrivalled sector to invest is the "store opening machine"...............a JB HiFI comes to mind.......the private equiteers have enjoyed this a little but it remains virtually untapped from a global perspective.......the key question being whether its 60% gross operating profit margins, something quite rare indeed, can be completely translated in all virgin markets

Like any 'growth stock' created in Phillip Fisher's image........the floated share price may be a historic relic in 10 years if Kathmandu executes.....that would be the question for all reading the prospectus

But probably it'll just be gobbled up by those who missed out on Myer and heard that another shop is on sale!!!


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## imajica (21 October 2009)

*Re: Kathmandu IPO*

In the prospectus it states:

The Offer comprises:
the Retail Offer, consisting of:  
the Kathmandu Employee Offer made to Eligible Kathmandu Employees; and 
the Broker Firm Offer made to Australian and New Zealand resident retail clients who have received a firm allocation from their Broker; and  
the Institutional Offer, which consists of an invitation to bid for Offer Shares made to Institutional Investors in Australia and New Zealand and a number of overseas jurisdictions. 

Does anyone know if Etrade have received a firm allocation?


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## dan-o (22 October 2009)

*Re: Kathmandu IPO*

Yeah im interested to read the prospectus. Ive bought stuff from them before and always wondered how they manage to sell it so much above what it actually costs. Even their 50% off sales they would make a killing on. They sell an attractive image and lifestyle. Roll on prospectus, lets see how the numbers look..


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## Awesomandy (23 October 2009)

*Re: Kathmandu IPO*

I think that there are quite a few other established but not as famous stores that sell the same type of things, and, giving the prices they charge, they really need to open up new markets to look for fresh blood who are not yet familiar with where to get this type of equipment. So, it would work well for a while, until people realise what a rip off they are.


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## tja125 (26 October 2009)

*Re: Kathmandu IPO*

Finally a topic i can actually comment on...

I tend to agree with awesomeandy to some degree. I worked in a large independent store within the same industry as Kathmandu for about 3 years as a purchaser of the products, and the general consensus then was that they basically copied other brand's products and released them under their own name and charged excessive prices. Although even considering that, the business model seems to be a lot better than Anaconda, who have also been opening up stores everywhere. Also between Paddy Pallins, Ray's Outdoors, Aanaconda and all the others, how much market is there?


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## YELNATS (26 October 2009)

*Re: Kathmandu IPO*

Wouldn't the intention by Kathmandu's founder and former-owner Jane Cameron to set up a business with a chain of shops to compete with Kathmandu be a threat?

(Page 61 of the Investor section of the Sun-Herald Sunday October 25, 2009).


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## YELNATS (26 October 2009)

*Re: Kathmandu IPO*



YELNATS said:


> Wouldn't the intention by Kathmandu's founder and former-owner Jane Cameron to set up a business with a chain of shops to compete with Kathmandu be a threat?
> 
> (Page 61 of the Investor section of the Sun-Herald Sunday October 25, 2009).




She says prices in her new stores would be 50 to 60 percent lower than Kathmandu. She sold Kathmandu in 2006 for a reported $275 million, knows the industry very well and despite some recent retail acquisitions she seems to be pretty cashed up.


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## ROE (26 October 2009)

*Re: Kathmandu IPO*

I spent a bit of money at Kathmandu store each year but right now I dont have an opinion on it, and I wont be shopping at Kathmandu any more if Jan follow her Plan. (see below)

there is something that bother me a little about this wonderful brand and I still havent figure out how they can sustain it, if the business was to grow like the two beauty that i like JB Hi-Fi  and The Reject Shop.

but a rule of thumb is when private equity sell out it wont be cheap but at least fully price...

if you want to know what Jan Cameron been up since she sold Kathmandu have a read here

http://www.stuff.co.nz/dominion-post/business/2996271/Kathmandu-faces-competition-from-former-owner

If she use her existing retail and logistic infrastructure and open 60 outdoor stores and price it much cheaper than kathmandu I dont know how Kathmandu can handle the pressure.

the market is start to get crowded with BCF, Ray outdoor expanding non-stop too..


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## Rainmaker2000 (26 October 2009)

*Re: Kathmandu IPO*

I've just been reading the prospectus........it does read like a very good sell.......still, it's not mutton dressed up as lamb.....it's got some enviable investment characteristics.....

For those who've comment on it from a perspective of, "i've been in their shops".......this type of intelligence is valuable but only in its place.......essentially, it matters little what you think of the product or the fact that I would never shop there, what matters is the business model and sustainable profit margins under the pressure of growth.......going into the store will be helpful in only a few respects..........similarly, I've always been dazzled by the Reject Shop model.........but would never buy anything from there........as a consumer myself, I just find the shop stupid......but I've always admired it from the float.....just an incredible business

All this talk of competition........its retail for crying out loud, I hope there is competition, otherwise there is no honeypot........

The fact that Kathmandu makes 60% profit margins in the face of existing and escalating competition says a lot of good, not bad

Personally, I would hope all the discounters enter the sector like crazy and rip everyone's profit margins to shreds.......cause they don't look like they would hit Kathmandu

I get the impression that the people who shop at Kathmandu buy a piece of the brand and then work out what the hell they are going to do with another useless product!!!


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## ricee007 (27 October 2009)

*Re: Kathmandu IPO*

started reading the IPO today.

My (now seven) minutes of looking into it seems to indicate that it seems it'll be pretty fairly priced.

However, also, IMHO, there are some shares on the ASX that are UNDERpriced.

Guess what will get my money first?


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## Rainmaker2000 (27 October 2009)

*Re: Kathmandu IPO*

Agree.......no debate it will not cheaply priced......if I do buy some, it will only be a few thousand just so that it sits on my watchlist for the case of a global meltdown or something


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## gamefisherman (27 October 2009)

*Re: Kathmandu IPO*

Has been a very good business model so far with stores able to jump into profit within 1 year, but with the founders desire to set up next year with a similar model with permanently low prices as oppossed to not ones with so called "sales" is an issue worth considering..although competition is the backbone of a free market.....

with interest rates due for a potential number of % rises and guesses that rates could be 2% higher by this time next year, I am wondering whether the amount of discretionary spending will be there. Great brand, great business model..................

Havent read the prospectus but am very cautious about business conditions with interest rates set to rise.....possibly as quickly even as they dropped...........????

Good luck to those who subscribe though.....may it scream ahead.....a great Australian brand


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## dan-o (28 October 2009)

*Re: Kathmandu IPO*

i couldnt find it on comsec, but does anyone know what the minimum application amount is through the comsec allocation??


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## Rainmaker2000 (28 October 2009)

*Re: Kathmandu IPO*

hehe, the prospectus said $1000.....but I know from experience (I took the minimum).hehe......is a measly $2000

I don't think the stock is cheaply priced, but I'll keep a close eye on it this way.............my instinct tells me that they are actually expecting more than 15 % profit growth this year......but it pretty much ruines a newly listed company if they miss their first profit forecast!!...so I think they are being conservative......


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## Annwn (28 October 2009)

*Re: Kathmandu IPO*



> Does anyone know if Etrade have received a firm allocation?




Couldn't find anything on on the Etrade IPO area, any info  on who has got allocation,

Cheers


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## dan-o (1 November 2009)

*Re: Kathmandu IPO*

ok ive found it, the minimum is $2k like you said, in increments of $500 from then on. can apply for up to 100k...


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## dan-o (1 November 2009)

*Re: Kathmandu IPO*

Annwyn, i dont know who besides comsec has an allocation for retail investors to participate in... i did a bit of a check but didnt find anything..


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## suhm (1 November 2009)

*Re: Kathmandu IPO*

From the article

She intends to offer everyday low prices instead of the regular 50 per cent off sales concept practised at Kathmandu – a concept Ms Cameron introduced.

She says the prices in her new stores will be 50 to 60 percent lower than Kathmandu's everyday prices.

"I imagine that if we are offering a similar product at competitive prices, at everyday low prices, around 50 to 60 percent lower than Kathmandu, I imagine that might be quite attractive

Does she mean 50-60% lower than Kathmandu's discounted price? Or their RRP, because I don't see it as that much of a threat if its 50-60% less than the RRP because the RRP at Kathmandu is a joke. Their like rug stores, their always having a sale so the RRP is just some fantasy number. Stuff is always 25-50% off or more or buy 1 get 1 free.

Given margins are 60%, she might be able to price it at a significant discount to Kathmandu's discounted price at which would shred margins for Kathmandu.


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## kenny (2 November 2009)

*Re: Kathmandu IPO*

Myer's debut today will have an impact on the perceived success of Katmandhu's IPO I suspect. Hard to compare a major retailer with a category killer of course but the sentiment will be there.

Can anyone point me towards a link with an analysis of the Katmandhu offer?

Cheers,

Kenny


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## dan-o (2 November 2009)

*Re: Kathmandu IPO*

Agreed. Myers effort is making me think harder about Kathmandu.


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## kenny (2 November 2009)

*Re: Kathmandu IPO*

I'd also like to see what strategy the management have in place to counter the growth of competitors like Anaconda who will target their margins and aim to match quality (believe this when I see it).

Cheers,

Kenny


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## trading_rookie (3 November 2009)

*Re: Kathmandu IPO*



> Wouldn't the intention by Kathmandu's founder and former-owner Jane Cameron to set up a business with a chain of shops to compete with Kathmandu be a threat?




From what I've read in AFR she has a restrictive clause until 2012 not to compete against Kathmandu...but she's of the opinion she'll be up and running by the end of 2010.


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## Rainmaker2000 (3 November 2009)

*Re: Kathmandu IPO*

I find this discussion of this magic women very amusing.....If Roger Corbett said, I've missed managing Woolworths and making it Australia's top 'essentials' grocer.......I'm going to start Australian Walmart in Competition...how would we react......how about JB Hifi

The whole concept is just ridiculous

1.  Kathmandu is Kathmadu......if you look at what's being sold in the prospectus.......it's pretty much just intangible asset which debt attached to it!!!

2. Kathmandu is a machine now......it's not the company Ms whatever her name started........the private equiteers have put the 'modern management touch on it'.........that's no magic but its now a corporate machine that dominates the market and the only way to beat it will be another corporate machine

3.  Sadly, this lady is obviously a very energetic, fiesty and very, very astute retail mind......but that won't be enough on her own....she is dreaming

It's a bit sad really, that, when a company 'turns into a machine'.....it's almost impossible for one person to come along and bring it down......

The Kathmandu machine is ageless......it has no conscience....it will compete ferociously........she is not

Unfortunately for all her blusterings, she's going to have to let go.......if she wanted to see it go to a good home, she should have organised a leveraged ESOP and sold it to her employees.....


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## Rainmaker2000 (4 November 2009)

*Re: Kathmandu IPO*

Comsec share allocation has closed 3 days early........what does that mean? Are they calling it off........doubt it

They have probably used up their allocation, which is a bit odd since their allocation would be the biggest of all


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## dan-o (20 November 2009)

*Re: Kathmandu IPO*

This one got off to a good start but has drifted back to issue price. Seems to have support there. Anyone have any thoughts? I missed the IPO when it closed early but am keeping an eye on it to see what happens..


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## notting (27 September 2013)

*Re: KMD - Kathmandu*

Team NZ should have had this on their sales.
A bricks and mortar retailer, that sells genuine quality clothes, serves you well, and is well worth the the prices offered.

Stunning!


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## piggybank (3 October 2013)

*Re: KMD - Kathmandu*

Still on the up. Closed at $3.15 today.


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## notting (20 June 2014)

*Re: KMD - Kathmandu*

Had a nice little run up over the last 6 months or so and has now retraced to that 61.8 and holding.
Compared to the *TRS* you'd think *KMD* should have gone through the floor if you believed the *TRS* justification for their falling to lows not seen since December 2006!!!. 

What was the reason offered by management?  - Unseasonably warm weather!!!

How that would stop me from buying some junk from the Reject shop I am not sure.  :silly: 
See monthly chart - 




I could understand warm weather preventing me from getting some thermal warming cloths from *KMD* however.
Both have been aggressively expanding stores and been pretty well praised over the last two years for their efforts.  See KMD Daily chart -




I'm not sure what the point of this post is other than the Reject Shop is in some kind of strife given warm weather aint hurting KMD that much.

KMD Monthly Chart -


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## notting (24 June 2014)

*Re: KMD - Kathmandu*

KMD came out with a profit warning today.  Smack down about 14% 
Guess we all should of seen that coming!!!!
Shot down through that 61.8 but bouncing for the moment back up.
Testing times!!
Meanwhile after the unseasonably warm winter so far,  we now have blizzard conditions all over the Alps.  
 ~ Best KMD hit the air waves and have a bumper recovery!


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## Wysiwyg (24 June 2014)

*Re: KMD - Kathmandu*

Bit untimely news if one jumped on the trend early June. Instant K.O. but experience wise it could teach to avoid reporting periods. Unless one knows the company is raking it in.


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## notting (24 June 2014)

*Re: KMD - Kathmandu*

Wait for the turn.
It'll be a cracker! 

[video]http://www.news.com.au/travel/travel-ideas/best-snowfalls-in-a-decade-forecast-for-eastern-australia-strap-yourselves-in-for-the-megablizzard/story-e6frfqdr-1226963855196[/video]

Even today should be pointed as it's so far done a hard reversal blow off style, though news of the downgrade needs to filter out for tomorrows traders on yesterdays news.  If todays low isn't broken timing is right as consumers are getting over the budget girly screams and retail in general seems to be getting the thumbs up from the likes of Solom Lou and The DJ Enthusiasts (It's a new band).
Rock on retail - it's bottom picking time.


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## McCoy Pauley (25 June 2014)

*Re: KMD - Kathmandu*

I walked into a Kathmandu store at Doncaster Shoppingtown a couple of weekends ago looking for a new winter coat to replace one that's lasted me almost 10 years (I actually bought the coat at the Australian Formula One Grand Prix when I was caught short by some terrible Melbourne weather, but that's a different story).

Had a quick browse then walked straight back out.  I'm not an adventure person, so I don't go in for all that stuff - I was after a coat that could keep me reasonably warm when I go to the footy and keep me reasonably waterproof if I'm caught in the rain.

But I thought that for what Kathmandu was selling, they seemed overpriced and fairly unfashionable (not that I'm a fashionable person).  And that was with the sale that was going on.

I wouldn't make my investment decision based on my sole experience of a Kathmandu store but to me it seems to confirm my impression that again Australian retailers are generally overpriced compared to what I could buy online through Amazon or another retailer.


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## Tightwad (25 June 2014)

*Re: KMD - Kathmandu*

i went into my local one today for a change seeing it was a sale, found a plastic bottle with kathmandu logo with the normal price of $20.. seriously - its something that should be given away as promotion.  i regularly haunt online cycling retailers and after 50% and more off they're still not in the ballpark.

i suspect their target market is not online shoppers (although they do have an online club) but people with cash to burn who will gear up for overseas trips etc. justifying that they've already spent a few K on their holiday and now its time to buy the accessories all in one place.


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## notting (26 June 2014)

*Re: KMD - Kathmandu*

Most stuff these days is appalling quality and cheep.

KMD stuff aint cheep but the quality is good and you can get stuff that does actually keeps you warm!  
Like real wool. 

Even their warm drink holders work better than anything I've ever tried which makes it worth paying 4 times as much because they work!!! Having three peaces of crap that don't keep your drink warm is useless!

I do think they have a fairly loyal customer base who know what they are doing.  
The proof is that they have done extremely well compared to most retailers in the last 5 years.
I don't think the stock is cheap at these levels and there is not much snow in NZ yet so they will be suffering over their too.
Price action pretty good for 2 days if you were not in prior.


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## Clansman (27 June 2014)

*Re: KMD - Kathmandu*

There products aren't fashionable, but they're clothing is generally high quality and wins hands down in the function stakes. Something is not quite right at the moment with their business model and I suspect it is their pricing being out of sync with current market conditions. I attended one of their sales recently where they were offering supposedly heavy discounts and some sort of incentive for the first 25 people etc.
It wasn't well frequented and most appeared to split quite quickly.
Surprising majority were middle aged and older.
Something needs refining but overall it's a good business model on the quality front.


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## qldfrog (28 June 2014)

*Re: KMD - Kathmandu*

Their price (on sales) on the same items are nearly twice as much as Anaconda on sale (recent experience purchasing a rain pant (trekking) for my son)
As the right size was missing in Anaconda, ended up ordering online from the uk (not even cheap chinese) for a further 50% off
As to their audience; you need to be wealthy and not be price conscious to shop at KMD, quality may be good but you can get the same quality for less elsewhere IMHO.
Not a share holder.


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## notting (1 August 2014)

*Re: KMD - Kathmandu*



> During July, temperatures have been generally colder in comparison to June across most of Australia and New Zealand, particularly in the second half of the month. During the period since 24 June Kathmandu has recovered a significant portion of the shortfall in sales revenue it experienced in the early part of winter. Kathmandu’s CEO Peter Halkett commented that “It is pleasing to have delivered a better full year result for FY14 than we were anticipating a few weeks ago when warm winter weather had significantly reduced customer demand. The improvement in sales and earnings in July once colder winter weather became established has resulted in a satisfactory outcome from our key winter sale event




That's more like it.


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## McCoy Pauley (25 August 2014)

*Re: KMD - Kathmandu*

The CEO suddenly resigned, as announced today to the market. Will stay in the job until late November but wants to take a break of up to a year off and then look for a fresh challenge.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01545796

Interesting timing.  Holders have ditched the stock - it's down about 4.6% today.


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## piggybank (22 December 2014)

*Re: KMD - Kathmandu*

Kathmandu Holdings Ltd

(ASX/NZX:KMD) advises same store sales and gross margins in the first five weeks of the company’s Christmas sale promotion in our largest  market, Australia, have been below the levels achieved last year. Same store sales in New Zealand and the United Kingdom are currently up. At last month’s Annual General Meeting Kathmandu advised that YTD FY2015 to 16 November 2014 sales had increased by 18.6% 20.5% at constant exchange rates)...

Not surprisingly the stock fell 21.5% on larger than normal volume - it closed at $2.07

The rest of the release can be read by double clicking the link below

http://www.stocknessmonster.com/news-item?S=KMD&E=ASX&N=836066


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## notting (22 December 2014)

*Re: KMD - Kathmandu*

It wasn't just the result it was that about a month ago they came out with much more positive estimates.
It will no longer be treated like a quality company and treated accordingly on the market. Trashed.


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## notting (2 February 2015)

*Re: KMD - Kathmandu*

Bit of interest at 1.40.  But not banking on it, though exited the rest of the short.


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## rb250660 (2 February 2015)

*Re: KMD - Kathmandu*

Everytime I walk past their shop in the CBD at lunch there are no shoppers in there. Adjacent shops selling similar goods are quite busy.


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## ROE (2 February 2015)

*Re: KMD - Kathmandu*

This stock earning is more akin to resource sector 
up down and round about.

I think their pricing strategy is flaw, heavy markup so they can have
a massive sale 2 months a year, so the rest of the year no one would shop there

so even if they have cheap price no one would shop, they just wait for the sale
and once people work out the sale price isn't that cheap, they shop less.

so the only way for them is margin compression and lower price and that cant be good
for the stock price...

and they doing a failed reject shop strategy....they now stock all sort of gear and move away from their core technical gears...so more distraction and more completion and less earning on the new stuff


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## Wysiwyg (1 July 2015)

*Re: KMD - Kathmandu*

The share price was bid up to the take over offer value before the takeover offer details were announced. Again some people are privy to market sensitive information before release.


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## skyQuake (1 July 2015)

*Re: KMD - Kathmandu*

It was announced on the 30th via financial press. Nobody knew much details only that it was a cash & script bid via Briscoe


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## VSntchr (1 July 2015)

*Re: KMD - Kathmandu*



Wysiwyg said:


> The share price was bid up to the take over offer value before the takeover offer details were announced. Again some people are privy to market sensitive information before release.






skyQuake said:


> It was announced on the 30th via financial press. Nobody knew much details only that it was a cash & script bid via Briscoe




...and given that they had paid up to NZ$1.80 (AU$1.60) to get a 19.9% stake it gave the market a _rough _idea of a minimum value that the offer would come in at.


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## Wysiwyg (1 July 2015)

*Re: KMD - Kathmandu*



VSntchr said:


> ...and given that they had paid up to NZ$1.80 (AU$1.60) to get a 19.9% stake it gave the market a _rough _idea of a minimum value that the offer would come in at.



The offer value is $1.58 and yesterday the highest bid was $1.575. It was known before the announcement. No over buy.


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## piggybank (10 August 2016)

*Re: KMD - Kathmandu*

Where to from here?

*Fundamentals*

PE Ratio - 13.08

Div. Yield - 4.00%

EPS ($) - 0.143

DPS ($) - 0.0746

Earnings Yield - 7.65%

Gross Div. Yield - 4.96%


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## Porper (10 August 2016)

*Re: KMD - Kathmandu*



piggybank said:


> Where to from here?
> 
> *Fundamentals*
> 
> ...




Measured move out of the basing pattern aligns with $2.40. These basing patterns have been producing some stellar moves recently.

We hold.


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## greggles (25 June 2018)

Kathmandu has gapped up today after releasing a Trading Update and revising its FY2018 profit guidance. KMD now expects to report EBIT of $72 to $77 million (last year $57m) and NPAT of $48 to $52 million (last year $38m).

The KMD share price opened above its recent highs of $2.50 and is currently trading at $2.67. It hasn't seen these prices since late 2014. The market has taken a positive view of the revised figures and there is obviously a perception that earnings and profit growth can be sustained into 2019.


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## Knobby22 (30 June 2018)

greggles said:


> Kathmandu has gapped up today after releasing a Trading Update and revising its FY2018 profit guidance. KMD now expects to report EBIT of $72 to $77 million (last year $57m) and NPAT of $48 to $52 million (last year $38m).
> 
> The KMD share price opened above its recent highs of $2.50 and is currently trading at $2.67. It hasn't seen these prices since late 2014. The market has taken a positive view of the revised figures and there is obviously a perception that earnings and profit growth can be sustained into 2019.
> 
> View attachment 87958



This is my pick for the month. With the announcement above and having my daughter working part time there, she says the jackets in particular are selling fast as they are quality and fashionable and she should know being a high school student.
I am expecting a very good result so price should keep rising.


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## leyy (19 July 2018)

I have also taken a position on KMD.

Main reason being that this year's winter is bloody freezing!!!!

Their jackets and winter gear are selling like hotcakes, I have been to various stores around Sydney and they are super busy, I also bought a jacket too and love it! The customer experience was positive and good store experience.

I'd say they have very high margins on all their products even if they are on sale, GOP is around 63.3%. Good trading update in June. Sales growth and margins have increased.

Oboz footwear acquisition has room to grown perfect vertical for the KMD brand, online sales are increasing faster than retail sales.

I also believe they will report strong. It's not all doom and gloom for retail. Some retail stocks are performing strong look at LOV, ADH, AX1, KGN, SFH, NBL as some examples.

Cheers


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## greggles (26 March 2019)

*Kathmandu lifts H1 profit 13.7% to $NZ14m*


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## Knobby22 (26 March 2019)

greggles said:


> *Kathmandu lifts H1 profit 13.7% to $NZ14m*



Market not impressed.
I got out in October on first big fall at a slight loss.
Retail is hard, especially these days.
Katmandu is one of the best but I note overseas competition has entered local market.


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## finicky (31 March 2020)

*KMD* @ $0.98

KMD  in a trading halt today, what a pity for shareholders as I have 4 companies on my retailers list today up 30% or more after the Morrison Govt employee wage subsidy announcement.

KMD board believes that information that might lead to a future material announcement from KMD has leaked to some market participants.

Coincidentally I was thinking about this one last night (see chart)
They don't have much LT debt ($24m) but they do appear to me to have an unfavourable balance of cash + receivables ($20m) to payables ($71m) - all at end fy19. They do have a massive inventory but how to turn it into cash to defray payables with shops closed?

KMD all Data MTHLY


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## finicky (1 April 2020)

*KMD* @ 0.98

*Equity Raise*

Underwritten, so looks like it's possible to raise this amount in this situation. If they succeed I will strongly consider buying a few if I can get them *below* the capital raise price of 50c which is itself a 50% reduction of the price prior to the trading halt. That price seems good compensation for the dilution and additionally I would be buying a financially safer company. Tough on those already holding though.

What I didn't get from my previous superficial look at the financials of the company through Commsec's end of fy19 summary was that KMD took on a massive senior secured debt of $220m to buy out RipCurl *post* fy19 - this was announced October 1st 2019.

So on to today's announcement (excerpt):

• The Group has launched a* fully underwritten $207 million Equity Raising at an offer price of $0.50 per share *via a $30 million Placement to certain institutional investors, together with an approximately $177 million 1.2 for 1 pro-rata accelerated Entitlement Offer (together, the Equity Raising).
• Post-raising, the Group will be strongly capitalised through the current market uncertainties caused by the global COVID-19 pandemic.


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## Knobby22 (11 May 2020)

Bought in, maybe a bit late, at 93c.
My daughter works there part time and there were queues a mile long of people trying to buy when they reopened Saturday.


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## finicky (11 May 2020)

I'll be picking up some if there's a second crash later (around Sept - David Hunter)


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## mangojoe (11 May 2020)

I figured with international travel restricted an outdoor/camping gear retailer would naturally do better than usual, maybe.


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## Dona Ferentes (11 May 2020)

Knobby22 said:


> Bought in, maybe a bit late, at 93c.



did well - closed 1.01

the Cap Raising @ 50c !!!


Knobby22 said:


> My daughter works there part time and there were queues a mile long of people trying to buy when they reopened Saturday.





> " _During April, Group *online sales were 2.5 to 3 times higher* than last year, with the highest growth rates in Australia, the Group’s largest market. Online sales growth strengthened over April as consumers adapted to online being their only available shopping channel._"





> In Australia, over recent days, most Kathmandu and Rip Curl stores in New South Wales and Queensland have reopened on a trial basis, with robust safety protocols in place. The majority of Australian Kathmandu and Rip Curl stores are expected to reopen by the end of this week.
> Kathmandu and Rip Curl stores in New Zealand, North America, Europe, Brazil and Japan remain closed and will reopen as soon as Government directives in each jurisdiction allow.


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## Clansman (11 May 2020)

There is 2 obvious realities that are going to fall in Kathmandu's favour and both are important. Coming out of lockdown, first of all KMD is a desirable place to shop and just be. No less important is the fact that all this is going to coincide with the southern hemisphere winter and people and more importantly more people than usual are going to travel within their region only, and their going to need to be equipped to do it. The stars are aligning for them.


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## Knobby22 (21 September 2020)

Clansman said:


> There is 2 obvious realities that are going to fall in Kathmandu's favour and both are important. Coming out of lockdown, first of all KMD is a desirable place to shop and just be. No less important is the fact that all this is going to coincide with the southern hemisphere winter and people and more importantly more people than usual are going to travel within their region only, and their going to need to be equipped to do it. The stars are aligning for them.




Been a good hold. I think they are in a strong position and maybe they can get their rents reduced also.


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## Knobby22 (1 December 2020)

Katmandu chief quits to join public service.

Seems he wants to do something for public good and he a good fit for Austrade and so for Australia.
Probably good timing in reality, Need someone to bed in Ripcurl and a fresh CEO is good after 5 years.


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## Knobby22 (31 December 2020)

Sold my shares today. Covid...no more need be said.


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## debtfree (1 May 2021)

Just a quick Weekly Chart update.


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## finicky (1 May 2021)

Haven't been following any fundamentals but looks to be a very positive chart.


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## debtfree (8 May 2021)

A few campers must have brought some supplies!


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## Dona Ferentes (8 May 2021)

bought a pair of Kathmandu sandals ... lasted for 7 years. The soles wore out.

second pair purchased 18 months ago, soles are still with tread, but the insole (leather) has fallen apart, and inner sole separated from the outsole . Went to complain and they said ' new factory '.  Absolute overpriced rubbish.


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## finicky (8 May 2021)

No ASX announcement about your sandals, market'll shrug it off.


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## Dona Ferentes (6 March 2022)

> _   Kathmandu is still around, after a near death experience. New management and a restructure        _



    and _*repositioning*_

The $872 million camping chain Kathmandu listed on the ASX in November in 2009 at $1.90 per share but has since transformed into a company with three distinct brands: Kathmandu, US based Oboz hiking shoes and surf brand Rip Curl.

The new name and stripped back logo design , _*KMD Brands*_ , has a fresh colour palette. The company worked with Icon Agency on the new design.

Chief executive Michael Daly said the new name _reflects the heritage of the brand, while also taking it into the future where it is has lofty expectations of more than doubling sales to $NZ2 billion and lifting EBITDA margins to 15 per cent from 12.5 per cent within five years._

The Kathmandu brand is targeting international sales of $NZ100 million in the next five years and is looking to expand to Europe, Canada and then the US markets where it is relatively unknown and will go head to head with mega brands such as Patagonia and The North Face.



finicky said:


> _No ASX announcement about your sandals, market'll shrug it off_*.*



PS.Thanks for your concern.


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## System (18 March 2022)

On March 18th, 2022, Kathmandu Holdings Limited changed its name to KMD Brands Limited.


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