Kathmandu’s profit climbs on strong winter

Kathmandu 2Strong winter sales growth in Australia and New Zealand has boosted outdoor clothing retailer Kathmandu’s full-year profit by as much as 13.4 per cent.

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.

Comments

Comment Manually

Yop Polls

Easter trading
Should retailers be allowed to open on Easter Sunday?

Twitter

Upscale retailer halts plans, US retail sales improve. https://t.co/fJ0Wm6EBsr

9 hours ago

Wesfarmers-owned chain the only DDS to improve over last year. https://t.co/ZMi0OGCEew

10 hours ago

Don’t be fooled by deceptive distinctions between different forms of commerce. https://t.co/9MzTuIinrC

10 hours ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered