2351 GMT - It's too early for Forsyth Barr to turn bullish about KMD Brands, despite signs that its sales growth is gathering steam. KMD's sales rose by 7.9% in the first five months of FY 2026, led by its Kathmandu outdoor clothing brand. Sales were helped by a 2% benefit from favorable currency swings. Still, analyst Paul Laxton Koraua says promotional activity is pressuring gross margins. Combined with higher operating expenses, this limits the potential for earnings upgrades in the near term. Forsyth Barr retains a neutral call on KMD. "While we continue to see some long-term value in KMD (7x FY28 price-to-earnings) if it can execute on the business turnaround, we think investors can afford to be patient," it says. KMD is up 1.9% at NZ$0.27. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 02, 2026 18:51 ET (23:51 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.