Thank you for standing by, and welcome to the Kathmandu Holdings Limited H1 FY21 Kathmandu Results Investor Call. All participants are in a listen-only mode. There'll be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Xavier Simonet, Group CEO. Please go ahead. Thank you, Bernadette. Good morning, everyone, and thank you for joining us on today's presentation of the Kathmandu Holdings results for the first half of the 2021 financial year. My name is Xavier Simonet, and I'm the Group CEO of the company. I'm joined on the call by Chris Kinraid, our Chief Financial Officer, and by our Chairman, David Kirk, who will participate in the Q&A session. We'll be talking to the presentation, both on the NZX and ASX this morning. Unless otherwise specified, all financial numbers are in New Zealand dollars. We will begin on slide two, which briefly covers our first half group results. Despite the ongoing COVID-19 impact in key global markets, the group has achieved strong first half results. Rip Curl delivered an outstanding first half result, validating the group's diversification strategy. Benefiting from increased participation in surfing in Australia, Europe, and the U.S., Rip Curl achieved strong sales and profits despite key store closures, underpinned by the brand's technical product focus and strong consumer engagement. Pleasingly, Rip Curl's wholesale order book is above pre-COVID-19 levels. Kathmandu was particularly impacted by COVID-19 related store closures and travel restrictions, with less international travel to the Northern Hemisphere winter resulting in reduced demand for insulation and rainwear products. However, we did see renewed interest in local travel and adventure, which led to strong demand for camp, beach, and footwear products. Oboz achieved sales growth as a result of the successful product innovation strategy and diversification of its customer base, and we also saw increased participation in hiking. The group continues to benefit from our cautious operational and capital management following COVID-19 and the strong cash-generating ability of our brand. Turning on to slide three, I'd like to discuss in more detail the group's first half financial year highlights. As I mentioned previously, our half year results were underpinned by the strong performance of Rip Curl. Total group sales were up 12.9% on prior year, which includes a full six months contribution from Rip Curl. This result validates our diversification strategy, which we will continue to leverage going forward. We continue to be cautious around our operating costs in response to the current uncertain trading conditions. As such, there were some significant restructuring and synergy savings and rent abatements, supplemented by government wage assistance. Taken together, this has allowed us to improve first half trading profit, achieving an underlying EBITDA of NZD 48.2 million. Pleasingly, we saw a step change in our group online sales penetration increasing to 12.7% of direct-to-consumer sales, a sizable increase over the previous corresponding figure of 8.8%. We finished the half with a strong balance sheet with net debt of NZD 10.1 million following careful management of our working capital. Moving to slide four, I want to expand on the increase in group online penetration that we saw over the half. As a result of changing consumer preferences brought about by the COVID-19 lockdown period, we saw an acceleration in online sales. The investments we made into our omnichannel capabilities allowed our brands to capture this growth in online sales, which saw group online sales grow 18.5% to a record NZD 36 million. Online penetration remains significantly above pre-COVID levels above Rip Curl and Kathmandu. Rip Curl online sales growth was significantly higher across key markets, registering 107% growth in U.S.A., 47% growth in Australia, and 78% in Europe. Kathmandu's online sales of NZD 18.6 million in the half represented 14.4% of total direct-to-consumer sales. This was up from 10.5% in the prior year. We're excited to build on our online success with Rip Curl and Kathmandu by launching an Oboz online store imminently. Moving on to slide five now. Sustainability is at the core of our brand. We firmly believe that actions are inextricably linked to our values, so I'm proud to announce that the Kathmandu brand has reached its carbon neutral milestone four years ahead of schedule. Whilst we're excited to have achieved such a milestone, our ambition doesn't stop there, and the group will set a science-based carbon reduction target moving forward. I'd like to highlight some other notable sustainability achievements. The Kathmandu brand meets the highest standards of environmental and social performance as certified by its B Corp status. Kathmandu is also a member of the Fair Labor Association, using 100% sustainable cotton, and obtained the Rainbow Tick certification in New Zealand for embracing diversity and inclusion. For Rip Curl, last year marked the 20th anniversary of Rip Curl Planet Day, where our crew worked with local councils to rejuvenate the coast. Rip Curl was also scored a B+ in the Ethical Fashion Report for the second year running and collaborated with Kathmandu on its first sustainability report. As for Oboz, over 3.3 million trees have been planted since the company's inception, and gender diversity on the team has improved, with female representation reaching 41%. Turning to slide six, I now want to discuss the impacts we saw from the COVID-19 pandemic and how we responded. Clearly, COVID-19 had a major impact on our business in the first half. Over 60 greater Melbourne stores were closed for over 11 weeks. 14 stores in Auckland were closed for two weeks, and several CBD and airport stores, as well as stores in Hawaii, Bali, and Europe, are still impacted by either COVID-related travel restrictions or government-mandated lockdowns and closures. In addition, wholesale sales to the half were impacted by the missed selling season during the initial lockdown in April and May 2020 for delivery in October to December 2020. I'm very proud of the rapid response our team implemented to react to changes in consumer preference. With participation in surfing increasing, Rip Curl responded quickly to demand for wetsuits and related surfing products. Kathmandu upweighted its focus on summer camping and footwear to respond to increased interest in local travel and adventure. Our omni-channel capability allowed our brands to capture record demand online. I will now hand over to Chris to cover the remainder of the presentation. Thank you, Xavier. Moving on to the group results overview on slide eight. Our H1 results include the adoption of IFRS 16. For comparability, the impact of IFRS 16 has been excluded from our underlying results. The first half of FY 2021 includes a full six months of Rip Curl, compared to the first half of FY 2020, which included three months of Rip Curl post-acquisition. As you can see, we have recorded positive financial metrics. Total sales in the first half of the year increased to NZD 410.7 million, and underlying EBITDA increased by 19% to NZD 48.2 million. As previously mentioned by Xavier, we've continued to act cautiously around the management of operating expenses. The approach is now helping our underlying results as we receive the benefits of rent abatement, as well as the NZD 15 million in annualized cost reduction from restructuring and synergy savings. Government wage assistance across geographies contributed to a net benefit to operating expenses of NZD 15.2 million. Depreciation also included a NZD 2.5 million notional amortization of Rip Curl customer relationships. Business cost in the first half includes the non-cash write-down of a NZD 2.1 million one-off bank facility underwriting costs relating to the Rip Curl acquisition. These have been excluded from the underlying results. Moving to operating cash flow on slide nine, we again delivered strong cash flow of NZD 10.7 million despite the challenging conditions. We have an outflow in working capital of NZD 17.9 million, driven primarily by a reduction in payables as a result of final agreements with landlords on rent abatements that we signaled at our year-end release last year. CapEx for the full year is expected to be circa NZD 30 million, with continued investment in systems and capabilities. Moving to our balance sheet on slide 10, we are in a very strong position. We've managed our inventory very carefully, and our current inventory position is well-placed in the COVID-19 demand environment, with low clearance stock levels. Lease liabilities have reduced due to leases progressing through their fixed lease terms. On to slide 11, you can see a breakdown of the net debt over the past three years. Net debt has decreased NZD 10.1 million following the capital raise in April 2020. This has given us significant headroom in our current facility of circa NZD 380 million. It should be noted that historically, the second half of the financial year for the Kathmandu brand generates very strong cash inflows. Currently, the group complies with all debt facility covenants, and we're currently in the process of reviewing our debt facility, which is expected to increase flexibility, reduce drawn funds, and introduce sustainability in financing. Subject to normal trading conditions, we expect to be in a positive cash position by the end of the year. On to slide 12, interim dividend. In light of the improved trading conditions, the group has resumed paying dividends, with our directors declaring a NZD 0.02 per share interim dividend. The dividend will not be imputed for New Zealand shareholders but will be fully franked for Australian shareholders. We'll now move to the segment results and performance of each of our brands. Looking at Rip Curl in more detail on slide 14, we can see the underlying P&L for the six months, the first half, and the first half compared to three months in 2020. On a comparable six-month basis, total sales were 4.3% below last year. Sales growth achieved in key markets. Direct- to- consumer sales grew strongly in the 27 weeks ended 31 January, with 21% growth adjusted for store closures and 7.4% growth overall. Sales in our online channel grew significantly on the comparable six-month period last year, up 79%, comprised 11.2% of DTC sales. As a result of higher mix of direct-to-consumer sales by gross margin, 40 basis points above the six-month period last year. Lockdown disrupted the wholesale selling period for deliveries in October to December 2020. Order books for subsequent seasons are now above pre-COVID-19 levels, reflecting customers restocking and strong surf category performance. Moving on to slide 15. This showcases a few of our flagship Rip Curl product innovations. A key tenet of Rip Curl and all our brands is technical excellence and innovation, which allows us to provide the best possible product for our customers. Continuing with market-leading foam collection, the Paradise Coral Foam collection joins the sustainable Saltwater Culture family, providing customers an eco-friendly range of quality surf products. The Anti-Series puffer collection and Anti-Series Peak Seeker jacket embodies the synergy shared across our brands, with the former utilizing Kathmandu expertise to develop new technical insulation styles, and the latter leveraging technology from the successful Heat Seeker suit program. Slide 16 covers the group commitment to the global brand leadership of Rip Curl. We have recently signed a three-year partnership for the new Rip Curl World Surf League Finals, a season-ending one-day competition that will decide the men's and women's world surfing champions. Rip Curl also holds the sponsorship for naming rights to three new events on the WSL Championship Tour, Rip Curl Newcastle Cup, Rip Curl Narrabeen Classic, and the Rip Curl GromSearch in New Zealand. Rip Curl has also secured ongoing sponsorship of the Rip Curl Pro at Bells Beach when it returns in 2022. Lastly, Rip Curl is launching a brand new global campaign including 50 of our international team riders to promote diversity, inclusivity, and sizes for all. Moving to the Kathmandu brand on slide 18, I show Kathmandu's underlying P&L for the first half to FY 2021. COVID-19 lockdowns and travel restrictions and store closures impacted on Kathmandu financials. Total sales 34.1% below the first half of last year. In Australia, sales were 40.5% below last year, with 27 greater Melbourne stores closed for 11 weeks. In New Zealand, total sales were 23.4% below last year, with the Auckland store closed for two weeks. Same-store sales were 30% below last year when adjusted for lockdown closures and 35.4% below last year overall. Both premium shopping centers, CBD stores, and tourist locations acted in tandem with reduced demand for insulation and rainwear resulting from a lack of international travelers to the Northern Hemisphere planning on total sales. Online penetration increased from 10.5% of sales in the first half of FY 2020 to 14.4% of sales in the first half of FY 2021. Pleasing is the strong demand for camp, beach, and footwear from the renewed interest in local travel and adventure. Kathmandu sales have been historically weighted to the second half of the year, and winter and Australasia drive natural demand for insulation and rainwear. Kathmandu operating expenses included the benefits from restructuring, other payments, and linked to government wage assistance. On the slide 19, we continue to lead innovation and sustainable technology. Slide 19 shows how we have developed products focused on sustainability. For example, 100% recycled biodegradable fleece, a world first. Built in partnership with PrimaLoft, it breaks down at a highly accelerated rate in landfills and oceans and returns to its natural elements. Turning to slide 20, we have an active and engaged customer base with a net promoter score of 76, 3% above the second half of last year. We continue to leverage the Summit Club loyalty program, driving personalization of the customer relationship and building brand loyalty. We have 2.2 million active Summit Club members, representing over 70% of total Kathmandu sales. We're continuing to invest in personalization capabilities, boosting loyalty performance by using data analytics and invites to drive stronger relevancy and, in turn, higher conversion. Moving on to Oboz, slide 22, shows Oboz profit and loss in its local US dollar currency. Oboz sales grew 3.8%, reaching $22.1 million for the half, driven by a successful product innovation strategy and increased participation in hiking. Gross margin was impacted significantly by a one-off airfreight cost of $ 1.1 million and support key customer delivery of winter seasonal styles. Gross margin will normalize to historical levels for the second half. Recently, our full order book is well above pre-COVID-19 levels, enabling the business to support future growth. This includes the development of a new online store, which is set for an imminent launch. Moving to slide 23. Oboz has been broadening the appeal of its product range since acquisition to target a younger, more diverse, and active consumer segment. This is evidenced by the successful selling of the new Sypes and Bozeman collections, achieved while maintaining the strength of core Bridger and Sawtooth hiking boot styles. Diversity has always been a focus of the group. Accordingly, Oboz has launched its first-ever diversity, equity, and inclusion report. Oboz currently enjoys a highly reputable brand as the number one selling outdoor footwear brand in the U.S. in the Outside Business Journal annual survey of American independent retailers. This comes off the back of our successful Trailist influencer program from the middle of last year, in conjunction with the launch of the True to the Trail podcast. This contributed to a 37% growth in Oboz' social media audience. Now move to slide 25, our group strategy. Our group strategy has not changed throughout the challenging period. We are a global outdoor and action sport company underpinned by iconic brands and technical products with a focus on sustainability. We've been building a portfolio of brands that provides diversification across geography, channels, products, and seasonality. Designed to meet global year-round needs of customers in the outdoor sport and lifestyle categories. We leverage a portfolio delivering operational excellence in sourcing, supply chain, and systems, accelerating digital transformation, and driving margin expansion through synergy, complementary expertise, and core capabilities of our brands. We're maintaining a relentless focus on core customers, delivering solutions to their needs. We'll be able to grow these brands to a global scale, enhance customer loyalty. In particular, we'll continue the development of technical, differentiated, and sustainable products, and accelerate the expansion of the direct-to-consumer business. Throughout this whole journey, we will remain true to our values. Sustainability is part of our DNA and is ingrained in everything we do. We also embrace diversity and inclusion in the workplace and build strong ties with our communities. Moving to slide 26. Our key strategic priorities for FY 2021 remain unchanged. We remain committed to delivering on our strategic imperatives. As noted previously, the strong Rip Curl performance achieved in the first half of FY 2021 proves our diversification strategy. In the second half, Kathmandu is very well positioned to perform in its traditional strong winter season. The group continues to leverage the portfolio of the brands at its disposal. Online penetration increased to 12.7% in the first half, up from 8.8% last year. In the second half, we will continue to invest in our digital program, including loyalty management, demand planning, personalization using data algorithms, data-driven insights into consumer preferences, as well as ERP and point-of-sale upgrades. We'll be implementing a loyalty program at Rip Curl with the end goal of improving analytics, customer loyalty, and ultimately conversion and sales. The launch of Oboz online store and increasing use of personalization and data analytics for Kathmandu will also be a priority in the second half. Lastly, following on from the carbon neutral certification of the Kathmandu brand, we'll be setting a science-based carbon reduction target for the group. We are also working towards a group-wide B Corp certification, engaging with key stakeholders in a group ESG materiality assessment. Moving on the outlook on slide 27. Kathmandu ended traditionally strong winter season very well prepared. Oboz investment in new products see that into the second half with an order book well above pre-COVID-19 levels. Rip Curl continued to trade in line with strong first-half trends, and wholesale order books are above pre-COVID-19 levels. The long-term growth fundamentals remain in place with strong, iconic brands. We create technical and innovative products. We have a loyal customer base with growing global reach. Recently, the lockdown conditions appear to have increased participation in outdoor hiking, beach, and surfing activities. Our brands are well-positioned to capitalize on this trend. The rollout of COVID-19 vaccines looks set to benefit international travel in the long- term, which will in turn provide strong growth opportunities. A strong cash-generating business with low debt provides us with the flexibility when it comes to potential growth opportunities and growing returns for our shareholders. This now concludes the formal part of today's presentation. I'd like to thank all our shareholders for their support and for taking the time to join us on the call. I'd like to now open the call for questions, where myself and David Kirk, our Chairman, will be available for questions. Your first question comes from Andrew Steele of Jarden. Please go ahead. Andrew. Good morning, guys. The first one from me is on Rip Curl. Could you just call out the level of rent abatements and wage assistance that you received in the first half? I guess related to that, looking forward, what would you say you think a sustainable EBITDA margin is in that business? In terms of the rent abatements, it's about NZD 2 million brief brand. The wage assistance, the way I look at the wage assistance is that it was probably neutral against the impact of store closures for the Rip Curl brand in the first half. The net impact was very little. Our long-term target for Rip Curl has always been at 15% EBITDA margin. We've achieved that in the first half. We expect some moderation in the second half, but we remain committed to that long-term goal. Okay. Just to be clear, were you saying that you had the 15% on a full year basis for this year, or is that something to think in future years will moderate back towards that, say, in the FY 2022 year? Yeah. We had a very strong first half of Rip Curl. There's a lot of break to come and COVID impacts to consider for the second half. I know we're reasonably confident on our target. Great. Thank you. Just on the Kathmandu brand, you've called out the negative impact of weakness in specific categories. Could you actually call out how much was winter down and travel categories down? What does that look like, the relativity to all other categories? Is it just that those ones were down significantly and all others were flat or modestly up? What does that picture look like? Yeah. Without going into specifics individual category. For those categories, that was a significant impact on trading for that half, the first half, as well as obviously real travel related in terms of some travel accessories. That outweighed the upside we saw in camps that were in pure hike mode at that stage. That impacts largely you're seeing through the numbers in terms of the trading overall. Just again, sorry to clarify on that, Chris. You're saying that outside of those categories that you specifically called out, which were impacted, all others, were they broadly up on average or flat? I mean- On average down. There's some things like, for example, in winter products which can be bought adequately, also impacted. Across that mix, the weighting of insulation, rainwear, and winter products, which we traditionally sell quite strongly in the first half. Obviously travel, that took them out, outweighed the impact of the camp and some other category performance. Thank you. I'd also like to announce, due to the limited time we have today, could you please limit questions to two per person to allow everyone to have the opportunity. Your next question comes from Guy Hooper of Forsyth Barr. Please go ahead. Good morning. I just heard before Andrew was asking around the Kathmandu brand. How do you characterize, are there any movements in market share or market position for that brand over the last few years? Overall for market treatment, different brands have different characteristics. The outdoor segment, outdoor and travel segment, is quite a broad segment. A pure like for like is really hard to measure. We remain pretty confident in terms of those key insulation rainwear styles that got impacted in the first half of our overall positioning in the market. I'm not going to talk to that guy, but you can't just compare two likes alike because of the difference in product categories and expanded brands which some of our competitors sell, and have a higher summer product weighting as well. You can't directly compare that. Overall, I think in terms of our winter weighted products heading towards winter, we're pretty confident in terms of our market share in those categories. Okay. Thank you. Just around inventory movements, how are you feeling about those? Do you expect them to return to prior year levels at year-end? Maybe some comments just around a return to normal promotional calendar or level of discounting in the future? First one, inventory levels. We're in a pretty clean inventory position. There may be some slight restocking of some area of inventory, so there'll be some movement, but not a material movement in inventory position. The bigger challenge with inventory is all areas of just supply chains getting in on time for shipping out. We're reasonably confident for the inventory position deliver the second half. That's okay. Thank you. Your next question comes from Marni Lysaght of Macquarie. Please go ahead. Morning, Chris. Good morning. Hey, Marni. How are we? This is David. David's doing the Q&A for Marni as well. This is David on the call. Oh, sorry, David. David and Chris, just wanted to run through maybe the sell-through rate that you're seeing in the channels that Oboz and Rip Curl are exposed to. How much of it would be demand, and how much of it would be maybe, this is just pure speculation, that maybe inventory balances are a little weaker in those retail partners because of the COVID-19 and planning not really corresponding with demand levels? Yeah. There's definitely an element of inventory restocking that we believe in some of the forward orders. Particularly, we've seen in the Boardriders channel, based on sell-through in our own retail stores. We see that with surf shops generally. We're confident that there's elements of both in there in terms of the category performance as well as inventory restocking. Same with Oboz in the U.S. Definitely, there's some inventory restocking a part of that. We're really pleased with the performance of Oboz for its key customers, customer base, as we talked about in the presentation. I think there's a mix of restocking and category performance. That's all clear. My second question just relates to there. Just trying to understand in your trade and other receivables, the allowance for expected credit losses, which is in note eight. It remains above pre-pandemic levels. Can you perhaps run us through how we think about receivables moving forward? I note that, obviously, the receivables are down too. How are the inventory sales talking to that? I think- Sorry, sell-downs. Yeah. No, we're in a conservative position there. We've actually seen the collections be very strong, especially in the US market and European market. Overall, we're very comfortable with our current collection and receivables. It's been operating very clean. That's all clear. I'll let others ask their questions. Thanks. Thanks, Marni. Thank you. Your next question comes from Mark Wade of CLSA. Please go ahead. Mark. Good morning, guys. I appreciate the comments you made earlier that you're saying the Kathmandu brands were all prepared for the second half. Can you expand on some of the plans there over the next couple of years to really reinvigorate that brand in Australia and New Zealand and to improve the awareness in some of the newer markets in North America? Reinvigoration, Mark. Last winter was a weak winter really across Kathmandu Brands. We're pretty confident with good stock levels of key styles and a strong brand positioning and promotional calendar set up. I think we're well-positioned for that winter coming up. We're always reviewing product mix and categories for Kathmandu, and there's some things on the horizon just to support the brand activity. We'll continue to invest in that space in our good sites. We're always looking at going forward, and I'm pretty confident that as we go through markets opening up, because that's been the biggest impact on Kathmandu, is the pure lack of travel and traffic. As we start seeing even domestic tourism open up further with confidence, that will see some improvement there. Okay. Maybe David, if I can ask you for an update on the search for a replacement Group CEO. The specific qualities being sought in that candidate and perhaps what aspects of the group strategy are set in stone versus what's open to change. Good morning, everyone. Thanks for the question. We're well along the way with our new CEO search. We have appointed Egon Zehnder to support us on the process. We are past the longlist phase, and we're moving into interviews of a shortlist of candidates. We're reliant on, in terms of the start date, we're reliant on the arrangements that the chosen candidate has in their current agreement if they come from outside the organization. We have progressed well, and we're very interested in some of the candidates. That's good. The Chief Executive will bring their own lens to the organization, but we feel as if there's a clear strategy being put forward by management and engaged with by the board and committed to by board and management. That strategy you've seen unveiled over the last couple of years, and we think it's been a successful strategy. If you look at the contribution that Rip Curl has made in this period in particular, I think it would be difficult to disagree that it's been a good strategy to differentiate and diversify by season, by hemisphere, by product. Only to do so in acquiring and investing in brands that are consistent with the portfolio and Kathmandu's roots and of their Rip Curl roots. It's a technical brand, which has a strong element of emotional connection in the brand, and an omnichannel approach to going to market. I think you can expect that type of thinking to continue. As I said, a new Chief Executive will, of course, bring his or her angle on that. Thanks for that insight, David. Thank you. Your next question comes from Paige Hennessy of ACC. Please go ahead. Hi, guys. Thank you for your time today. My first question is just around the NZD 15 million in cost savings and really whether or not you expect to see them endure or continuing on through the year and whether there are any additional cost savings to come. We largely get NZD 15 million annualized as ongoing. We expect that to continue. We're pretty confident on that. We've already gone pretty hard on some of that review of the cost structure, we've no significant other cost out happening. We always review our cost structure to be as efficient as possible in light of what we need to do and invest in the group. That's currently where it's at. Okay, great. Thank you. Obviously a lot of interest in Kathmandu and how it's going to perform through the winter. Are you able to provide a trading update on how it's tracking in the last couple of weeks? I mean, it's an obviously pretty hard period to compare it when, again, it's got slightly timing difference on promotional calendar, your comp increased, COVID-19 impacts right now last year. We are an improved pickup on those key winter styles, but as ever they get Okay. Thank you, guys. Thank you. Your next question comes from Chris Byrne of Craigs IP. Please go ahead. Good morning to both of you. I guess, one for you, David, just your balance sheet's obviously very strong. You've talked about being able to use that for opportunities. Is that more within your current assets or are you talking about looking at further acquisitions? I guess in that lens, you have diversified now by geography and by season. If you were going to acquire further, what traits would you be looking at that would fit the bill as to why you would acquire? Hi, Chris. Yeah, the balance sheet is in a strong position now. We're mindful that we're not, and the world is not completely out of the woods with COVID. We think it's unpredictable the next six months to a year. That gives us some pause to think in terms of maintaining a strong balance sheet. I don't think anything's changed with regard to the fundamental strategy, and therefore the fundamental attractiveness of potential acquisition opportunities. It's worth stressing that we are not acquirers for the sake of getting bigger or for the sake of delivering on a strategy only. We put scale aside, we want to deliver on the strategy. Only if the financial returns from the investment, whether it be by acquisition or further investment into the current business, need to be very strong and particularly in the current environment, they need to have real margin for error. We don't see anything in particular that we would be rushing to make a major investment in, either internally or externally. There's good opportunities for internal investment to grow the capability and profitability over time of the current business. We will remain measured, keep our antenna up for opportunity. We're not rushing out to allocate a whole lot of capital at the moment. Great. Just one final quick one. Any thoughts on rebranding the group? Yes. There are thoughts on rebranding the group. We haven't landed on that, but that's been a subject of discussion at the board a couple of times. We've had some rather more pressing things just recently to deal with so that we will come back to that, and we'll continue to consider that. What do you think? Right. Okay. Do you know anything, it's a good idea? Yeah. For what particular reasons? Just to separate the brand of the group from the brand of each operating company. Yeah, I think so. I think to separate Kathmandu, the fact that you've diversified now is not really reflected in the name. Look, it doesn't mean you have to change it. I just wondered whether it was something you were considering, which I personally, I think would make sense, but probably not the right thing to do. Yeah. Okay. Thanks. Thank you. Your next question comes from Julian Mulcahy of E&P. Please go ahead. Thanks, guys. Chris, I'm just drilling into the Kathmandu numbers. I mean, the NZD 68 million fall in revenue is quite sharp, particularly when you look at Macpac, I know they're a lot smaller, but they had only sort of modest reduction. Do you reckon you could put a figure around how much you actually lost in rainwear and insulation sales in relation to international people and whether it's more about a market share sort of issue than anything? Could I- Yeah, I mean. Sorry, Chris, to jump in. Yeah. I mean, you can correct me or elaborate after. It is really worth understanding that Macpac now, the current Macpac, and Kathmandu are not really comparable in terms of product mix and product use focus. You will know that Macpac is the rebranding of all of Super Retail Group, Ray's Outdoors and BCF. Just Ray, sorry. Ray was very much focused on larger format, camping and outdoor. A lot of focus, a lot of stuff that is quite domestically focused. Kathmandu in the period has suffered largely because of the lack of international travel. I think one of the things that is not particularly comparable amongst the two is where the stores actually are. CBD areas have been down quite significantly. I think they were fairly strong in CBD areas compared to people working from home and suburban areas and looking to suburban retail parks. I think those two things, channel mix and product mix, are pretty relevant when it comes to overall sales comparisons between Macpac and Kathmandu during the period. Sorry, Chris. Back to you. Yeah, no, that's fine, David. I've got nothing more to add to that. Probably just to like the, can you split out, well, where the NZD 68 million drop in revenue was? Oh. In relation to the rainwear insulation. I mean, Melbourne market is obviously a bigger market for Kathmandu as well. There's the period of closure in that third quarter as well, a significant impact. About 28 stores in that market alone for Kathmandu. I mean, I would agree that it's largely kind of three-quarters of the impact. Right. Okay. I mean, like online sales up strongly, but clearly with an online purchase, you don't get those add-ons. You may have got a few in store. Is that a fair assessment? It's always great to have a customer in store as well. You can engage customer service point of view to engage with customers. There's always a good preference to have that customer interaction. That's obviously very important for all retail going forward. For the Kathmandu brand, that's something that, especially in that summer period and that gifting period, that's quite important. Okay. Thanks, David. Thanks, Chris. Welcome. Thank you. There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.