Sharechat Logo

Kathmandu tips first half profit to rise 20% on higher sales, wider margins

Wednesday 24th January 2018

Text too small?

Kathmandu Holdings, the outdoor equipment retailer, expects a 20 percent lift in first-half net profit on a 4 percent lift in total sales and wider gross margins.  

The Christchurch-based company said it expects that net profit will be at least $12 million in the six months to Jan. 31 versus $10 million in the first half of the 2017 financial year. Total sales will be approximately $204 million versus $196.3 million, it said. The company had previously said the first half net profit would be "above" last year. 

“Striking the right balance in the key Christmas trading period between generating sales growth and improving our gross margin has fuelled healthy earnings growth. We have also continued to strengthen our balance sheet position during the first half," chief executive  Xavier Simonet said in a statement to the stock exchange.

Kathmandu also said group same-store sales for the 25 weeks ending Jan. 31 were down 0.8 percent at constant exchange rates. In its largest market Australia, same-store sales grew by 1.9 percent while in New Zealand they fell 6.4 percent. 

The company is due to report its first-half result on March 20. 

The shares were unchanged at $2.39 and have risen 27 percent over the past 12 months. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports