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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