The Australian outdoor giant KMD Brands, known for functional clothing, backpacks, camping gear, and surf products, teeters on the edge of the financial abyss after a transgender advertising campaign.

For over a decade, the company posted steady profits, grew vigorously, and carved out a clear identity: masculine, cool, independent, nature-oriented. KMD Brands sold lifestyle products that embodied exactly what young men and family-oriented customers sought – tangible, authentic, identity-defining.

Arriving in the Red Zone

But the engine of the successful company has started to sputter. After a loss of 48.3 million New Zealand dollars (NZD) last year, KMD Brands reported for fiscal 2024/2025 a doubled loss of 92.06 million NZD, roughly 47.5 million euros.
The driver of the loss was none other than the lifestyle surf brand "Rip Curl," whose sales dropped by 27 percent.

The catastrophic result has consequences. KMD Brands operates around 300 stores worldwide. In light of rising costs and falling sales, the first 21 stores are set to close this year, with 16 more likely to follow next year. The company is trying to restructure, regain control of costs, and launch six new premium stores to refresh its image.