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Jeremy Hutton: Milford Asset Management Equities Analyst on KMD Brands posting a half-year net loss · Best of Business

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  Speaker 2: Jeremy Hasn't from Mill Finance Set Management with Me, Jeremy.
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  Speaker 2: Good evening, evening, right, Yeah, good to have you back.
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  Speaker 2: KMD Brands released their half year financial results today. Stock
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  Speaker 2: has had a torrid few weeks. What are investors buying
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  Speaker 2: into here?
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  Speaker 3: Yeah, KMD Brands had their numbers out today, and just
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  Speaker 3: remember that this is looking back six months into the
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  Speaker 3: last half of twenty twenty four, but it is over
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  Speaker 3: the very important Christmas and New Year spend period for retailers.
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  Speaker 3: And I will also a quick reminder on the brands
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  Speaker 3: in KMD, so the very well known Catman Do Appower brand,
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  Speaker 3: and then it's also got rip Curl, which is a
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  Speaker 3: very important surf brand as well. But you're right, the
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  Speaker 3: business has had a torrid time, particularly over the past
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  Speaker 3: few years. The share price is down seventy seven percent
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  Speaker 3: since the peak in November twenty twenty one, and that's
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  Speaker 3: largely been tracking sales down and profits down across all
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  Speaker 3: their brands. So investors here are really backing a cyclical
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  Speaker 3: retail recovery story. But it will take a few years
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  Speaker 3: to come to fruition.
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  Speaker 2: But finally I guess some sales improvements that would make
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  Speaker 2: some retailers pretty happy.
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  Speaker 3: Yeah, importantly, in the update today, they always provide some
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  Speaker 3: directional trends in sales, and they have been improving. And
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  Speaker 3: then finally, in the last quarter of twenty twenty four,
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  Speaker 3: both the important brands Catmen, Do and Ripkel reported positive
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  Speaker 3: sales growth again versus the Pride period and this was
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  Speaker 3: the first time that we'd seen positive sales growth in
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  Speaker 3: over two years. So really good to see and perhaps
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  Speaker 3: the start of the turnaround story for KMD brands.
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  Speaker 2: Yeah, let's hope. So, Jeremy, thank you very much for
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  Speaker 2: that up there. I appreciate your time. Jeremy Hautton, Milford
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  Speaker 2: Esset Management.
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