One-armed Hawaiian surfer Bethany Hamilton fell out with Rip Curl but the dispute took a new turn more recently. Photo / Getty Images
One-armed Hawaiian surfer Bethany Hamilton fell out with Rip Curl but the dispute took a new turn more recently. Photo / Getty Images
The owner of surf brand Rip Curl is in a furore over transgender rights as the company’s financial performance faces scrutiny.
The controversy emerged just two months after Rip Curl fell out with former ambassador and shark attack victim Bethany Hamilton over her refusal to compete against transgenderwomen.
Kathmandu (KMD), founded in New Zealand, acquired Rip Curl in 2019 for $368 million.
A social media backlash debate emerged over the weekend with a Rip Curl ad campaign featuring transgender surfer Sasha Jane Lowerson.
Some Australian commentators argued the Instagram ad featuring Lowerson and subsequent backdown was a case of “go woke, go broke”.
That term has become a trope for companies taking a financial hit or getting boycotted for being politically correct, progressive or “woke”.
But despite some rancorous commentary and even calls for boycotts, KMD has faced deeper financial and market challenges, according to Craig’s analysts.
“Kathmandu continues to drift at historic lows around the 74c level after a weak trading update just prior to Christmas...” Craigs said in a rating downgrade today.
Craigs research analyst Kieran Carling now expected first-half earnings before interest, taxes, depreciation, and amortisation to be well down on the corresponding period last year.
He said the Kathmandu brand seemed to be losing market share across Australasia but KMD gross margins were improving as freight rates softened.
The Herald approached KMD for comment today.
“We can’t comment on any investment bank ratings at this time given we are in an earnings blackout prior to the release of our half year results,” a company spokesperson said.
The Herald also asked KMD about Lowerson and the Rip Curl campaign but has not yet heard back.
Lessons from backlash, echo chambers
One Plus One Communications general manager Max Burt said the Rip Curl saga showed a small campaign could elicit a huge reaction very quickly.
“In today’s highly integrated media environment and social media environment, even small executions, small campaigns can blow up out of all proportion,” he said today.
“I’m not close to this campaign ... but it looks like quite a small social media campaign championing women heroes of Western Australian surfing.”
Burt said Rip Curl was now in a controversy likely out of all proportion to what was anticipated.
He said somebody posted online: “Rip Curl, enjoy your Bud Light moment.”
Dylan Mulvaney's promotion of Bud Light beer in 2023 precipitated a social media backlash from some quarters. Photo / Araya Doheny/Getty Images for Meta
Burt said anybody caught in an apparent social media firestorm should step back and relax, hard as that might be.
“My advice to them has been: As big as this feels, it’s not as big as you think it is...To step back from it and realise the echo chamber online is not the real world.”
Broadly speaking, it was better for brands to stand for something than for nothing, Burt said. But those values needed to be expressed through smart, strategic marketing.
On Rip Curl’s Instagram page today, one commenter wrote: “I stand with Bethany Hamilton”.
Rip Curl is one of KMD’s three key brands, along with Oboz and Kathmandu.
‘Hostile environment’
A former transgender activist and athlete said toxic social media had made life more dangerous for transgender people.
“I’ve competed at a top level in non-gender based sports, as a fella, and as a trans woman.”
But she said armchair experts had polluted many debates about the topic.
“Most of the advocates for trans women exclusion have never had the slightest interest in women’s sports at all.”
She said she now preferred to be quoted anonymously because the atmosphere was so venomous.
“It’s such a hostile environment for trans advocates.”
The Spinoff last year said more than 84 per cent of Kiwis canvassed in the LGBT+ Pride 2023 survey believed transgender people should be protected from discrimination in employment, housing and access to businesses.
