Kathmandu is starting to claw back sales

Brendon Thorne/Getty Images

Kathmandu has been hitting better sales numbers since the start of the financial year and now expects significantly better profits this year.

Sales to November 15 were up 8.6% to $91.3 million. Same store sales were up 4.8%.

A short time ago, the retailer’s shares were up 5% to $1.035. Kathmandu’s share price has fallen from $2.94 a year ago.

The adventure clothing retailer says it’s on track for a $NZ30.2 million full year profit, a big improvement on 2015.

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.

“We have made a solid start to FY2016 with sales growth particularly strong in our largest market Australia,” says CEO Xavier Simonet.

“Our first half-year profit result still remains highly dependent on the more significant Christmas trading period.”

Kathmandu has rejected a $AU324 million takeover bid by New Zealand retailer Briscoe as inadequate and “highly opportunistic”.

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