The KMD Brands Ltd (ASX: KMD) share price is falling hard today.
The ASX retail share, formerly known as Kathmandu, closed yesterday trading for 97 cents. In morning trade on Wednesday, shares are swapping hands for 85 cents apiece, down 12.4%.
This comes following the release of the company's trading update and guidance for the full year ending 31 July. (FY23).
Here are the highlights.
(*Note, dollar figures quoted below are in New Zealand dollars.)
What update did the ASX retailer provide?
The KMD share price is tumbling despite the company announcing that it expects to deliver a record $1.1 billion in full-year sales.
With three weeks of trade still ahead in KMD's financial year, management noted that it's looking to achieve this record despite weaker consumer sentiment in the fourth quarter.
Gross margins are forecast to be in line with FY22.
And the company expects underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range of $105 million to $110 million.
The KMD share price looks to be under pressure not from the record sales forecast, but from the weaker outlook ahead. "Kathmandu has so far experienced a slower start to its winter trading period," the company stated.
The retailer noted "more challenging" conditions in the fourth quarter amid increasing cost of living pressures.
Commenting on the trading update, KMD CEO Michael Daly said:
With three weeks of trade still to come, we remain focused on delivering our key Kathmandu winter and Rip Curl Northern Hemisphere summer results while continuing to moderate our cost base for the year ahead.
We're looking forward to delivering over $1 billion in sales at year-end – a first for KMD Brands.
KMD share price snapshot
With today's big intraday fall factored in, the KMD share price is down 9% in 2023.
