Net income for the fiscal year ended July 31 fell 40% to NZ$36,828,000 ($23.9 mm) at the company formerly called Kathmandu, down from NZ$61,345,000 last year, while net sales increased 6% to NZ$979,802,000 ($636.6 mm) from NZ $922,792,000. Gross margin held flat at 58.9% despite input cost pressure, and SG&A increased 11% in dollars, deleveraging 180 b.p. to 41.5%. North American sales inched up 0.2% to NZ$195.7 million ($127.2 mm) despite wetsuit shortages, port congestion, and softening consumer sentiment beginning in Q4. The region accounted for 20% of sales.
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