Kathmandu’s same-store sales dip in NZ, as focus shifts overseas
Kathmandu has reported a 3.9 per cent decline in same-store sales in New Zealand in FY19, and a 2.7 per cent increase in same-store sales in Australia year on year.
Overall, group same-store sales grew 0.6 per cent year on year in FY19, the outdoor retailer said in a trading update on its unaudited full-year results on Thursday.
Total sales across the business grew 9.6 per cent to $545 million compared to the year prior, with Kathmandu seeing strong performance in Australia during the second half of the financial year.
According to Kathmandu managing director and chief executive Xavier Simonet, this was due to strong winter sales in Australia, as well as the continued performance of footwear brand Oboz.
US-based footwear brand Oboz, acquired in April 2018, is expected to see continued growth in FY20 and beyond, according to Simonet.
The business expects to see net profit of between $55.5 million and NZ$57 million, based off of an EBIT of between $82.5 million and $84 million.
This is compared to last year’s net profit of $50.5 million and EBIT of $74.6 million.
Kathmandu expects to release its audited full-year results in late September.
Simonet has previously stated international growth remains a priority moving forward.
Kathmandu appointed Amy Beck as president of its North American business in January of this year as part of this international push.
“Kathmandu is on a journey of transformation,” Simonet said, noting that profit growth in the core Australasian business would be used to fund investment into future growth.
“While we are focused on driving growth for our core Kathmandu business in Australia and New Zealand, we are also step by step diversifying our channels, brand and markets, particularly through Oboz which has delivered strong growth.”