0007 GMT - There was a lot to like about KMD Brands' 1Q update, but Forsyth Barr isn't convinced that the tide has turned with key trading periods ahead. KMD reported an 8% rise in 1Q sales, albeit at a 120 bps lower gross margin than a year earlier. Analyst Paul Laxton Koraua says KMD sold older inventory at clearance prices to reduce debt and create space for new products. That's sensible given KMD's elevated net leverage ratio, Forsyth Barr says. "The trading update also proved that KMD can generate sales at the right price, albeit at a 1Q gross margin of 55.6%, which we think the group would be unlikely to sustain for the entire year," Forsyth Barr says. It retains a neutral call on the stock. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

November 19, 2025 19:07 ET (00:07 GMT)

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