KMD Brands, the parent company of surfwear label Rip Curl, has reported its largest financial loss in more than a decade, a downturn that followed a high-profile controversy surrounding one of its marketing campaigns.

For the fiscal year ending July 31, 2025, the company recorded a statutory net loss of NZ$93.6 million, a sharp increase from the NZ$48.3 million loss reported the year before. Executives linked the decline to global cost pressures, supply chain issues, and unusual weather patterns that affected seasonal sales. However, industry observers say the public reaction to Rip Curl’s recent promotional campaign also played a notable role in the company’s financial challenges.

The campaign featured surfer Sasha Jane Lowerson as part of Rip Curl’s women-focused promotions. The decision sparked widespread debate, with some groups expressing support while others voiced strong objections. The tension grew after Rip Curl ended its partnership with professional surfer Bethany Hamilton, who had spoken publicly about her concerns regarding fairness in women’s sports.

According to individuals close to the matter, the backlash placed significant strain on brand sentiment. One parent of a young Rip Curl-sponsored athlete commented, “We were worried about how the situation would affect the team environment. Our daughter loves the sport, and we want her to feel supported no matter the conversation happening around her.” Another parent added, “It wasn’t just about the campaign. It was about how quickly public opinion shifted and how hard it became for families connected to the brand.”

In response to the financial difficulties, KMD Brands has begun a restructuring plan that includes the closure of 21 retail stores and cost-saving measures expected to reduce annual spending by approximately NZ$5 million. Company leadership stated that these steps are part of a broader strategy to stabilize operations and rebuild consumer confidence.

While the exact impact of the campaign on the company’s bottom line cannot be precisely measured, analysts widely acknowledge that the public reaction intensified existing challenges. The situation highlights how quickly brand perception can shift and how sensitive major companies have become to cultural and social discussions.

As KMD Brands works to recover, retail experts note that the coming year will be crucial. The company’s ability to adapt, rebuild trust, and navigate ongoing market pressures will likely determine the direction of its next financial cycle.