Sharechat Logo

Kathmandu forecasts lift in annual profit on higher margins, sales; shares jump to month high

Monday 25th June 2018

Text too small?

Kathmandu Holdings, the outdoor equipment retailer, expects to increase profit this year on higher sales and better margins.

The Christchurch-based company said it expects net profit of $48 million to $52 million in the year ending July 31, from $38 million last year. Earnings before interest and tax are expected to be between $72 million and $77 million, from $57 million last year. Sales are up 7.7 percent so far this year covering the 47 weeks to June 24, it said.

The company's shares rose 3.2 percent in early trading to a month high of $2.58, and have gained 2.9 percent so far this year.

Under the management of chief executive Xavier Simonet, who started the role in June 2015, Kathmandu has been discounting less, selling more product at full-price and achieving a higher average selling price. So far this financial year, the company's gross profit margin is 240 basis points, or 2.4 percent, above last year, it said today.

On a same-store basis, Australian sales in the 47 weeks to June 24 are up 7.7 percent, with a 1.9 percent increase in the first half and a 14 percent jump in the second half to date. In New Zealand, same-store sales to date are down 1.5 percent, with a 6.3 percent decline in the first half and a 4 percent rise so far in the second half.

“Our second half so far has been strong across both Australia and New Zealand, with Australia experiencing double digit same store sales growth," Simonet said in the statement. "The autumn season and the start of our key winter promotion have delivered higher sales and profit than planned. The successful launch of innovative new products, enhanced in-store customer experience, inspiring content and engagement on social media and digital channels have contributed to the performance.”

Kathmandu will release its full-year earnings on Sept. 18.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report

IRG See IRG research reports