The troubled adventure clothing retailer Kathmandu has returned to profit.
Today it posted a first half profit of $NZ9.41 million, up more than 600%, compared to a loss of $NZ1.8 million for the same period a year ago.
The result, helped by less discounting and cost cutting, was better than the $NZ8.9 million expected by market analysts and was achieved on a 9% rise in revenue to $NZ195.9 million.
The New Zealand headquartered company also declared a dividend of 3 NZ cents a share.
Kathmandu posted a 51.7% drop in profit for 2015 to $NZ20.4 million after a fall in local sales, a rise in costs and a series of sales promotions which confused customers.
CEO Xavier Simonet says the latest result is in line with expectations.
â€œWhile it is good to be on track with our plan for the first half, as in every year, the full year result is highly dependent on the sales and margin achievement in our Easter and Winter campaigns,” he says.
“We have just commenced our Easter Sale so it is too early to provide an update on this promotion.”
He reconfirmed full year net profit after tax guidance of NZ$30.2 million.