Kathmandu appoints Rip Curl boss Michael Daly as new group CEO

Michael Daly. Photo / Supplied

Outdoor clothing and equipment retailer Kathmandu has appointed the boss of its Rip Curl brand to lead the company.

Michael Daly replaces former CEO and managing director Xavier Simonet following his departure from the dual ASX/NZX listed company.

Daly has been the chief executive of Rip Curl for eight years. The company is now in the process of finding a replacement to lead the surf brand.

In a NZX announcement, Kathmandu chairman David Kirk said after an extensive search for a new group CEO and managing director the company had chosen Daly.

"Michael has led Rip Curl for eight years with a relentless focus on brand, product, people and the bottom line and we are confident he will bring the same focus and energy to the wider group," Kirk said in a statement.

Daly said his appointment was an "exciting next step".

"The group has a portfolio of outstanding brands in Kathmandu, Rip Curl and Oboz and I am looking forward to leading three great teams as we work together to grow and develop the group," he said.

Kathmandu acquired Rip Curl in 2019 for A$350 million. The transaction was financed through a capital raise of $144.5m, and placement of approximately $32m of Kathmandu shares to the founders and CEO of Rip Curl. Approximately $230m of the acquisition price was funded through secured debt facilities.

The surf brand has proven to be a good buy for the company, and has benefitted from its strong sales in recent months.

In March Kathmandu announced it would resume its dividend payments.

The group increased almost 13 per cent in the first half of 2021.

Its EBITDA for the six months to December 31 was up 19 per cent to $48.2 million, excluding the impact of IFRS 16 and one-off transaction and abnormal costs, comparable to $40.5m in the previous period.

It posted a net profit after tax of $22.3m - up 194 per cent on the same time last year - and experienced a 12.9 per cent increase in sales revenue to $410.7m, which included six months of sales from its Rip Curl acquisition.

Kathmandu shares were last trading at a recent high of $1.59.