Rip Curl owner KMD Brands warns of price hikes | Australian Markets

The father or mother company of surfwear model Rip Curl and footwear label Oboz has warned Donald Trump’s so-called reciprocal tariffs will result in greater costs for its merchandise.

Dual-listed KMD Brands on Monday mentioned it was monitoring market dynamics, assessing optimum timing of price will increase and reviewing value mitigation choices to guard its profitability.

The two manufacturers have vital operations within the US, with Rip Curl accounting for about 12 per cent of the group’s annual gross sales and Oboz about 7 per cent.

Rip Curl and Oboz merchandise are manufactured throughout Asia, which is dealing with wide-ranging tariff will increase.

“These tariff increases have created significant uncertainty for most apparel and footwear businesses which sell into the US and will likely result in price increases that may impact consumer demand,” KMD mentioned.

“Until we have more clarity on changes to consumer demand in the US, the group will redirect some US inventory to other key global markets, or hold inventory with existing international third-party logistic partners.”

KMD — listed on the Australia Securities Exchange and New Zealand Exchange — mentioned it was too early to offer a dependable estimate of the financial impression for the remainder of the financial yr.

KMD chief government Brent Scrimshaw mentioned the new US tariffs had been one other headwind in an already difficult shopper atmosphere within the US.

“We are evaluating all strategic options, including pricing, cost mitigation and inventory investment, to safeguard the long-term value of our brands and protect our stakeholders,” he mentioned.

KMD can also be behind out of doors clothes model Kathmandu.