Two Australian retailers report good news, their shares rocket

Joel Kowsky/NASA via Getty Images
  • Two Australian retailers just reported strong sales growth, defying the retail crunch.
  • Kathmandu says sales for the three months of the financial year were up 8.4%.
  • Footwear retailer Accent Group expects full year earnings to be 15% to 20% ahead of last year.

Shares in retailers Kathamdu, a clothing store, and Accent Group, a footwear specialist, soared after they both reported strong sales.

The results go against trend, with many bricks and mortar retailers reporting subdued trade caused increasing competition by digital and global players and poor consumer sentiment.

A short time ago, Kathmandu shares were 18.5% higher at $2.75. Accent was up 16.7% to $1.29.

Adventure clothing retailer Kathmandu, at its AGM, reported sales for the 15 weeks to November 11, were up 8.4%. Same store sales growth was 6.3%.

CEO Xavier Simonet says there’s continuing demand for core Kathmandu products, following on from a successful winter last year.

“We have achieved good sales growth leading into the key Christmas trading period, and we expect first half profit to be strongly above last year,” he says.

“However, as always our first half-year result is highly dependent on the success of our Summer Sale.”

Footwear retailer Accent Group, the operator of Athlete’s Foot and other brands, issued a profit upgrade, saying sales are tracking higher as it expands its store network.

The company now expects earnings for the 2019 financial year to be 15% to 20% ahead of last year, up on its original forecast of mid-single digit growth.

Accent says like for like sales in the first 20 weeks of the year are up 2.5% and tracking to expectations.

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