Kathmandu remains confident it is on track to reach its forecasted profit in its first year as a listed company, despite continued short-term uncertainty.Speaking at an investor presentation in Australia today, managing director Peter Halkett said the out
Kathmandu remains confident it is on track to reach its forecasted profit in its first year as a listed company, despite continued short-term uncertainty.
Speaking at an investor presentation in Australia today, managing director Peter Halkett said the outdoor clothing retailer was still confident the forecast of ebitda reaching $57.1 million and a net profit after tax of $30.9 million – first made in the prospectus for the company’s IPO late last year will be achieved.
But he also warned that there was still “much uncertainty” in the short term, with concerns over rising interest rates, the fallout from the impact of last year’s stimulus package across the Tasman and increasing rents and salaries.
Mr Halkett also said there could also be effects from the “volatile and unpredictable” economic environment, while the company remains dependent on the equally unpredictable weather to meet its profit targets.
Kathmandu currently has 93 stores in its network and is planning to open another 15-20 stores a year, with 18 possible locations identified in New Zealand, while another five to eight existing stores across Australasia will also be upgraded every year.
Mr Halkett said the company was also planning to spark growth by increasing its product offering by 5-7% per annum and doubling membership in its Summit Club loyalty programme, which currently has more than 340,000 members in three countries, up 20% on the same time last year.
In March, the retailer unveiled an interim net profit of $4.4 million, with a 14.4% jump in New Zealand same store sales contributing to the result.
Kathmandu made its debut on the ASX and NZX through a dual listing. After starting at the $2.22 mark, the share price fell to a low of $1.90 in early January, before reaching a new high of $2.57 midway through last month.
Since then, its price on the New Zealand exchange (NZX:KMD) has dipped back down and today was trading at $2.21 at 2pm, down 8c in today’s trading.
