Kathmandu lifts third-quarter sales 9.3% on new products, better promotions

Kathmandu Holdings lifted third-quarter sales 9.3 percent which the outdoor equipment chain said was due to new product lines and better promotions.

The Christchurch-based retailer increased group sales 9.3 percent in the 13 weeks ended April 30, and said sales were up 12 percent on a constant currency basis, without providing more detail. Kathmandu's increased sales were bolstered by new product performance and improved promotional execution, it said in a presentation slides lodged with the NZX.

In March, the retailer beat first-half guidance, reporting profit of $10 million on a 0.2 percent increase in sales to $196 million. The company has bounced back from an earnings slump in 2016 when an inventory build-up forced it into aggressive discounting at low margins to clear stock.

Kathmandu today said the upcoming winter sale in June and July is "key to the full-year result".

The shares rose 4 percent to $2.10, having gained 3.6 percent so far this year.

(BusinessDesk)