Kathmandu’s profit climbs on strong winter
The adventure gear retailer expects net profit for the year to July 31 will be between $NZ37.4 million and $NZ38 million ($A34.8 million-$A35.4 million), up from $NZ33.5 million in 2016.
Earnings before interest and tax are expected to come in between $NZ56 million and $NZ57 million, with group sales up $NZ19.7 million on 2016, the Christchurch-based retailer said on Thursday.
Kathmandu’s sales in Australia have climbed 6.9 per cent, while sales in New Zealand have increased 3.6 per cent.
Driving the boost in second-half growth was strong sales in the retailer’s winter season, the success of new products and improvements in the execution of promotions, Kathmandu’s chief executive Xavier Simonet said.
He said Kathmandu’s financial performance in 2017 had been strengthened further through operating leverage, reduced inventory and record low debt.
“Sales continued to grow in our key winter promotion which completed four successive quarters of same store sales growth,” said Simonet.
“Success of new products, enhanced engagement with Summit Club members through inspiring brand content, and improvements in the execution of our promotions underpinned our second‐half sales growth. Our financial performance has been strengthened further during FY2017 through operating leverage, reduced inventory and record low debt.”
The company will release its full-year results in September.