Shares in KMD Brands spiked after the owner of Rip Curl and Kathmandu unveiled a wide ranging review aimed at unlocking more value for investors.
The announcement landed alongside early progress on its store rationalisation programme, which continues to close underperforming locations.
Investors drove the share price up more than 13% to $0.59 in afternoon trade.
KMD Brands will commission external financial and legal advisers to run a comprehensive business review over the coming weeks, targeting completion before FY26 results in September 2026.
The company wants to test whether additional options exist to speed up value creation beyond its current Next Level strategy.
Operationally, group sales for the financial year to date, from August 2025 to April 2026, are up 6.6% helped by gains at Rip Curl, Kathmandu and Oboz.
In the latest quarter to April, sales rose 5.2% despite weakness at Oboz, while 16 stores have been shut so far in FY26 under its network optimisation plan.
Performance across KMD’s brands shows a mixed picture beneath the headline growth.
Year to date, Rip Curl sales are up 4.4%, Kathmandu has jumped 12.2% and Oboz has edged 0.4% higher.
In the three months to April, Rip Curl delivered 4% growth and Kathmandu 12%, but Oboz sales fell 8.9%, which the company links to the timing of wholesale shipments in the prior quarter.
Rip Curl has enjoyed favourable foreign exchange movements and positive comparable sales from North American flagship stores, even as demand softened after the US-Iran conflict began.
Kathmandu’s momentum has continued despite a net reduction of seven stores versus the prior year, supported by what KMD describes as better product innovation, assortment and inventory flow.
Market commentary points out that KMD’s group gross margins are now tracking ahead of expectations, even though the third quarter trading update looks uneven across brands.
The group is reiterating guidance for flat operating expenses for the full year, despite inflation and higher interest rates squeezing consumers.
Management is focused on closing stores where it cannot secure sustainable rental terms, sharpening the cost base as geopolitical tensions and cost of living pressures weigh on discretionary spending.
The strategic review will test whether the current playbook is enough or whether more radical options are needed to deliver stronger returns.
