KMD Brands will redirect some US inventory amid “uncertainty” brought about by President Donald Trump’s tariff announcement last week. 

The group said it will redirect the inventory to other key global markets or hold it with existing third-party logistic partners until it has “more clarity on changes to consumer demand in the US”.

According to the group, its Rip Curl US business accounts for approximately 12 per cent of total sales, while Oboz US accounts for 8 per cent. Both brands have significant seasonal inventory in the US which was landed before the recent tariff increase.

The Trump administration has announced higher tariffs on products manufactured outside the US, including significant increases on goods sourced from Asian countries. 

As Rip Curl and Oboz products are manufactured in Asia, the change will create “uncertainty” and likely result in price increases that may impact consumer demand, the group stated.

“The new US tariffs are another headwind in an already challenging consumer environment in the US,” commented Group CEO and MD Brent Scrimshaw. “We are evaluating all strategic options, including pricing, cost mitigation and inventory investment, to safeguard the long-term value of our brands and protect our stakeholders.”

The group added it is too early to estimate the likely financial impact for the remainder of FY25.

KMD recently reported flat sales for the fiscal first half despite improvements in its direct-to-consumer business.