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CORRECT: Kathmandu says full-year profit rose as much as 13%, driven by Australian sales

Thursday 3rd August 2017

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(Corrects third paragraph to show earnings slump was in 2015, updates shares in sixth)

Kathmandu Holdings says full-year profit rose as much as 13 percent after a successful winter sales season and increased revenue from Australia.

Profit was between $37.4 million and $38 million in the 12 months ended July 31, from $33.5 million in 2016, the Christchurch-based outdoor equipment chain said in a statement. Earnings before interest and tax were in a range of $56 million to $57 million, from $50.9 million in the previous year.

In March, the retailer beat its first-half guidance, having bounced back from an earnings slump in 2015 when an inventory build-up forced it into aggressive discounting at low margins to clear stock. Kathmandu shares have climbed 29 percent in the past 12 months, outpacing a 6.4 percent gain for the NZX 50 Index. 

"Our financial performance has been strengthened further during FY2017 through operating leverage, reduced inventory and record low debt,” said chief executive Xavier Simonet. "Sales continued to grow in our key Winter promotion which completed four successive quarters of same store sales growth."

Full-year sales rose 4.6 percent to $445.3 million while same-store sales rose 5.5 percent at constant exchange rates, the company said. On that basis, Australian sales gained 6.9 percent and New Zealand sales were up 3.6 percent.

The shares rose 1.8 percent to $2.30.

The company plans to release its full results for the year on Sept. 26.


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