Can KMD Brands’ ‘Next Level’ Strategy Reverse Market Undervaluation?
KMD Brands has launched a comprehensive transformation strategy aimed at unlocking brand potential and driving sustainable growth through cost reductions, product innovation, and digital acceleration.
- Launch of ‘Next Level’ global transformation strategy
- Targeting $25 million cost reset and organisational restructure
- Focus on product innovation with new Centres of Excellence
- Revamp of store portfolio including new Kathmandu concepts
- Acceleration of ecommerce and data-driven decision making
Transformation Strategy Launched
KMD Brands Limited has announced a bold new chapter with the unveiling of its “Next Level” transformation plan at the 2025 Investor Day. The strategy aims to unlock the untapped potential of its iconic brand portfolio, focusing on sustainable and profitable growth across global markets. Group CEO Brent Scrimshaw emphasised that the company’s brands have far greater potential than currently realised, setting the tone for a comprehensive overhaul.
Cost Reset and Organisational Restructure
Central to the plan is a minimum $25 million cost reset, which includes an ongoing organisational restructure designed to improve operational leverage and returns. This cost discipline is paired with a critical review of the store network portfolio, signalling a sharper focus on efficiency and profitability. The Board, led by Chairman David Kirk, expressed confidence that these initiatives will be self-funded and create increasing shareholder value.
Product Innovation and Store Revitalisation
KMD Brands is doubling down on product innovation by establishing product Centres of Excellence at Rip Curl’s headquarters in Torquay. This move is intended to enhance the output and speed-to-market of global product teams, blending technical performance with style and design. Meanwhile, the retail footprint will be re-energised with new store segmentation and the launch of three Kathmandu concept stores in Australia and New Zealand later this year, aiming to deliver more relevant consumer experiences and stronger brand expression.
Digital and Data-Driven Growth
The transformation also places a strong emphasis on digital capabilities and data intelligence. KMD Brands plans to accelerate its ecommerce platform rollout and invest in more effective digital marketing strategies to reset its international go-to-market approach. New tools will deepen data-led decision-making and enhance supply chain excellence, positioning the company to better respond to evolving consumer behaviours and market dynamics.
Looking Ahead
Each brand CEO will present refreshed strategic plans for FY26-28, focusing on market differentiation, customer engagement, and revenue acceleration. This multi-year transformation marks a significant pivot for KMD Brands, with the company committed to transparent reporting and regular market updates as it executes its ambitious agenda. Investors will be watching closely ahead of the FY25 audited results release scheduled for 24 September 2025.
Bottom Line?
KMD Brands’ ‘Next Level’ plan sets a clear path to reshape its future; execution will be key to unlocking value.
Questions in the middle?
- How quickly will the $25 million cost reset translate into improved profitability?
- What impact will the new Kathmandu store concepts have on customer engagement and sales?
- How effectively can KMD Brands leverage digital and data capabilities to accelerate growth?
