Adventure gear retailer Kathmandu says it it expects profit for the first half of the current financial year to match last year’s, despite pressure on sales growth.

For the 15 weeks to November 13, the company has reported a 2.8 per cent increase in sales, on a constant currency basis, compared to a year earlier. Same store sales rose only 1.4 per cent, compared to 4.8 per cent a year earlier.

Net profit increased by $13.1m, resulting in earnings per share for the year of 16.6 cents.

“In response to the strengthened US dollar, we have been less promotional in the first quarter. Combined with a higher mix of clearance and cycling UK store closures, this has impacted on sales in the first 15 weeks,” chief executive Xavier Simonet told the company’s annual general meeting on Friday.

“We have maintained our improved working capital position, with lower net debt and stock per store than the same time last year.”

Simonet also said the first half-year result is “highly dependent on the more significant Christmas trading period.”