Monday 1st February 2016
|Text too small?|
Kathmandu Holdings, the outdoor equipment chain that fended off a hostile takeover by Briscoe Group last year, lifted first-half profit 9.1 percent, on wider margins, and says it's on track to deliver annual profit of $30.2 million. The shares gained.
Sales rose to $195.7 million in the 26 weeks ended Jan. 31 from $179.4 million, and gross margins improved by 360 basis points, the Christchurch-based retailer said in a statement. On a constant currency basis, same-store sales were up 3.8 percent. The retailer said first-half profit was between $8.5 million and $9.5 million, and affirmed annual guidance.
The stock rose 5.9 percent to $1.61, still below the theoretical $1.80 a share implied at the time Briscoe made its offer.
"Top line sales growth was in line with expectations, but crucially it was profitable growth achieved through an improved gross margin outcome and realising planned cost efficiencies," chief executive Xavier Simonet said. "We expect approximately 55 percent of sales to be made in the second half of the financial year and between 65 percent and 70 percent of earnings."
In November, Kathmandu said it would refresh its promotions strategy for the Christmas trading period, which underpins the retailer's first-half performance, and to avoid sales fatigue among customers.
The first-half result will be announced in detail on March 22.
No comments yet
House price inflation ticks higher as sales volumes recover
Fletcher in $31 mln dispute with ministry over Greymouth hospital
NZ dollar eases as markets fret about US-China trade talks
15th October 2019 Morning Report
CTU pressures govt for Fair Pay Agreements
NZ Rugby not ready for a seat at Sky board table
MARKET CLOSE: NZ shares gain; Sky soars on NZ Rugby deal
NZ dollar falls ahead of inflation data
F&P Healthcare shares hit record on improved guidance
Bounce in international guest nights some reprieve for slowing tourism sector