Kathmandu third-quarter sales up 31.6%

Tuesday 3rd May 2011

Outdoor clothing and equipment retailer Kathmandu Holdings is reporting a 31.6% rise in third quarter sales, with same store sales for the 13-week period up 23.2%.

Kathmandu chief executive Peter Halkett said the company's Easter sale promotion was helped by favourable weather, particularly in Australia, and by the late April timing of the Easter weekend this year.

While the quarter to May 1 had clearly been particularly good, it was in comparison with a relatively poor performance for the corresponding period in 2010.

Kathmandu remained on track to deliver strong year-on-year sales and profit growth, with the third quarter performance building on a 19.2% sales increase achieved in the first half year, Halkett said.

Economic conditions and weather patterns remained key risks to the company's latest quarter trading. Historically, trading in the final three months of the financial year generated about 30% of earnings for the full year.

Measured on a constant currency exchange rate, the rise in total sales for the third period was 29%, while same store sales were up 20.7%.

Same store sales for the three months had been up by more than 20% in both Australia and this country, but down in Britain.

For the year to date, from August 1, total sales were up 23.1%, or 20.7% measured on a constant currency basis. Year to date same store sales lifted 15.5%, or 13.3% on constant currency.

Kathmandu shares were up 15c, or 6.1%, to a record high $2.60 in the first hour of trading.

NZPA

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