Troubled retailer Kathmandu has returned to profit, hitting its own targets with a 64% rise in annual after tax profit to $NZ33.5 million ($A32.5 million).
The result was on a 4% rise in sales to $NZ425.6 million ($A413 million) at its 162 stores, reflecting cost cutting and better margins.
The adventure retailer in 2015 posted a 51.7% drop in profit to $NZ20.4 million ($A19.8 million) after a series of sales promotions which confused customers.
This year, gross margins improved 1.1% percentage points to 62.6% from 61.5% in 2015.
The company also reduced the amount of stock it holds. Total inventory levels decreased by 15.8%.
And operating expenses fell by 2.6% as a percentage of sales.
CEO Xavier Simonet says the company will be exploring opportunities for Kathmandu to expand into international markets.
The company last year decided to get out of the UK market and instead build brand equity and its online platform internationally.
The last UK store is expected to close this financial year.
A final dividend of NZ 8 cents a share was declared, bringing the full year payout to NZ 11 cents.
Here’s a detailed look at the results:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.