Kathmandu investors will be heading to Australia’s surfing capital Torquay on Friday to be sold the merits of the company’s acquisition of Rip Curl.
The Australian listed retailer that sells outdoor clothing and camping equipment purchased the well-known surfwear brand from founders Doug “Claw” Warbrick and Brian “Sing Ding” Singer in October last year.
There is expected to be a strong turnout at the investor day, with many keen to hear the benefits of the acquisition, given the lack of what some say are obvious synergies.
No doubt, investors will be eager to receive some good news to offset fears that the bushfires would have hit Kathmandu’s earnings, with the camping plans of many shelved this summer.
However, Kathmandu’s earnings are typically skewed to the second half of the year when it makes most money on stock designed for colder weather.
The latest financial results for Rip Curl show the surfwear company was scooped up by Kathmandu just as the business was seeing its profitability leap ahead, with 2019 profits jumping by 50 per cent to $15.2m from continuing operations.
Rip Curl was founded by surfing friends Mr Warbrick and Mr Singer in the Victorian seaside town of Torquay in 1969.
It grew into a popular surf brand, designing, making and selling surfing equipment and apparel, with a global presence across Australia, New Zealand, North America, Europe, Southeast Asia and Brazil.
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