Kathmandu has reported solid sales growth for the half year. Shares in the outdoor and clothing equipment chain have jumped more than 10 per cent on news of its first half-year sales. The retailer says same store sales rose 3.8 per cent in the 26 weeks to January 31, while total sales rose 9.1 per cent to about $NZ195.7 million, up from $NZ179.4 million in the prior corresponding period. The group’s total sales were up 9.1 per cent to about $195.7 million, compared to $179.4 million in the pr
ior corresponding period.
Kathmandu’s chief executive officer Xavier Simonet said he was confident Kathmandu was on track to deliver an annual profit of $30.2 million. Simonet said sales during the key Christmas and January trading period were in line with management expectations and improved gross margin and cost efficiencies also bolstered the company’s performance.
“We expect approximately 55 per cent of sales to be made in the second half of the financial year and between 65 per cent to 70 per cent of earnings,” Simonet said in a statement on Monday.
“We also reconfirm that we remain on track to deliver full year net profit after tax of $NZ30.2m.”
Kathmandu, which fended off a hostile takeover by Briscoe Group last year, is due to release its audited half year results on March 22.