Kathmandu says first half profit slightly stronger on Australian sales rise
The Christchurch-based outdoor equipment chain said net profit was $9.9 million on year in the six months to January 31, versus $9.4 million a year ago.
Kathmandu Holdings said first-half profit was slightly higher from a year earlier, partly bolstered by solid same store sales growth.
The Christchurch-based outdoor equipment chain said net profit was $9.9 million on year in the six months to January 31, versus $9.4 million a year ago. Total sales were about $196.3 million compared to $196 million for the comparative prior period. The same store sales growth, which is calculated for the 26 weeks to January 27, was up 3.4% on a constant currency basis.
"Despite gross margin pressure in the first half from foreign currency, we were able to increase our earnings through healthy same store sales growth in our largest market, rigorous cost control and working capital efficiency," Kathmandu's chief executive Xavier Simonet said.
In November the company said it was on track to meet the previous year's first half result despite pressure on sales growth. The shares were trading up 2.1% at $1.94 after Tuesday's announcement.
Australia continues to generate most of the company's sales with total sales of $A121 million, up 6% in Australian dollars and 1.8% in New Zealand dollars. Australian same store sales growth was up 5% in local currency and 0.8% in New Zealand dollars.
Kathmandu's annual profit rebounded in 2016 from a slump a year earlier after a build-up of inventory forced it into aggressive discounting at lower margins to rid itself of excess stock. Under the management of Mr Simonet, who was appointed to the role in January 2015, the company has been taking a more cautious approach to sales and keeping expenses under control.
Kathmandu will release the full result for the first half on March 21.
(BusinessDesk)
Rebecca Howard
Tue, 07 Feb 2017
Tue, 07 Feb 2017
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Kathmandu says first half profit slightly stronger on Australian sales rise
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