Kathmandu reports good December, forecasts profit lift

Wednesday 19th January 2011

Kathmandu Holdings is forecasting a lift in its performance for the half year to the end of January.

It made the announcement shortly before the sharemarket opened today, and its shares surged 9c, or 5%, to $1.89 in early trading.

The company said group sales would be between $124 million and $126 million, which was between 16.3% and 18.2% up on the previous comparative period. Same store sales increases would be between 8.9% and 10.3%.

Earnings before interest and tax would be 20% to 26% higher, ranging from $18.5 million to $19.55million.

Kathmandu chief executive Peter Halkett said a strong sales performance in December and so far in January in both Australia and this country, coupled with improved gross margins were the primary reasons for the year-on-year increase.

The overall profit result for the full year would remain dependent on second half year trading, when historically about 60% of Kathmandu's full year's sales were made.

NZPA

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