Kathmandu and Rip Curl owner KMD Brands will close at least 21 stores and has replaced some key executives as part a transformation strategy to cut $25 million in annual costs.

The dual-listed company, which also owns the Oboz Footwear brand, said it was reviewing its portfolio of more than 328 company-owned stores and had already identified 21 for closure.

The stores were across KMD’s Kathmandu and Rip Curl’s global network, a spokeswoman said on Thursday.

The company also plans to open new stores, including new Rip Curl outlets along the Mediterranean coasts of Italy, Spain and France, and three Kathmandu concept stores in Australia and New Zealand later this year.

KMD has been struggling, incurring a $NZ20.7 million ($18.6 million) loss for the six months to January 31 and $NZ38.3 million the year before.

Earlier this year, it had to reach out to its lenders to amend financial covenants regarding its $NZ70 million in debt.

KMD cautioned in June that sales were down 0.5 per cent for the first 10 months of 2024/25, in part because warmer Australian weather meant fewer sales of insulated products such as Kathmandu’s iconic puffer jackets.

Chief executive Brent Scrimshaw said he had been listening to KMD’s teams and retail partners since beginning as CEO in March.

‘What I’ve been is clear: the potential of our brands is far greater than what we’re delivering today.’

Kathmandu and Rip Curl owner KMD Brands will close at least 21 stores and has replaced some key executives as part a transformation strategy to cut $25 million in annual costs.

Mr Scrimshaw said his observations included ‘insufficient iconic product and innovation cadence’, and products in a ‘sea of sameness’ with little differentiation.

The ‘Next Level’ reset plan included refocusing on product innovation and investing in speed-to-market, design and style, he said.

KMD has also shaken up its senior leadership team with more than 10 roles changed in the past 18 months.

‘We have deliberately made significant executive team changes to enhance the core capabilities of the group,’ said KMD chairman David Kirk.’

The company will release its results for the 12 months to July 31 on September 24.

In Thursday morning trading, KMD shares were up 4.6 per cent to 23 cents – still leaving them down 39.5 per cent so far in 2025.