KMD Brands, the parent company of Kathmandu, Rip Curl and Oboz, will shut down 21 stores across its network as part of a global transformation strategy.
The company said the initiative, called Next Level, is designed to unlock the full potential of its brand portfolio and deliver sustainable, profitable growth.
Group CEO and Managing Director Brent Scrimshaw said the strategy reflects a shift towards a more customer-focused approach.
“Since joining KMD Brands as Group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners whilst immersing myself in the business. What I’ve seen is clear: the potential of our brands is far greater than what we’re delivering today,” Scrimshaw said.
“That’s why we’re launching Next Level – a transformation strategy designed to align the Group behind a brand and product led customer-centric growth agenda. Core to our strategy is a clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography.”
The Next Level strategy centres on resetting the business for sustainable profitability by reducing costs, restructuring operations and undertaking a store portfolio review, which will result in 21 closures.
KMD said it expects at least $25 million in savings from these measures. It is also investing in product innovation through new “Centres of Excellence” at Rip Curl’s Torquay headquarters, designed to enhance the output of global product teams and streamline structure.
In retail, the company plans to re-energise its store network, including the launch of three Kathmandu “concept stores of the future” in Australia and New Zealand later this year.
At the same time, KMD is accelerating its digital transformation, bringing in new ecommerce platforms, tools and data capabilities to support decision-making, improve supply chain performance and strengthen its international go-to-market strategy.
Chairman David Kirk said the Board fully supports the strategy.
“We believe KMD Brands is materially undervalued by the market. Over the last 18 months we have deliberately made significant executive team changes to enhance the core capabilities of the group,” Kirk said.
“The board is fully aligned behind the Next Level strategy and is confident in the group’s ability to self-fund key initiatives and deliver increasing value for shareholders.”
Each brand within the portfolio will present updated strategic plans for FY26–28, focusing on sharpening market differentiation, reigniting customer engagement and accelerating revenue growth.
The company described the transformation as the beginning of a multi-year program, with key milestones already underway, and said it will continue to update the market as its plans progress.
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