- Kathmandu says sales for the first 47 weeks of the year are 7.7% above last year.
- The start of the adventure clothing store’s winter promotion delivered higher sales and profit than planned.
- The retailer is now forecasting net profit after tax of $48 million to $52 million compared to $38 million last year.
Shares in Kathmandu surged after the adventure clothing retailer upped its profit forecasts on the back of improved sales.
A short time ago, the shares were up more than 14% to $2.66.
The company says sales in the 47 weeks year to date are running 7.7% above last year.
Kathmandu says it expects full year EBIT to be between $72 million and $77 million compared to $57 million last year.
Net profit after tax is forecast between $48 million and $52 million compared to $38 million last year.
“Our second half so far has been strong across both Australia and New Zealand, with Australia experiencing double digit same store sales growth,” says Kathmandu CEO Xavier Simonet.
“The Autumn season and the start of our key Winter promotion have delivered higher sales and profit than planned.
“The successful launch of innovative new products, enhanced in-store customer experience, inspiring content and engagement on social media and digital channels, have contributed to the performance.”
The company posted a 23% rise in profit to $NZ12.3 million on a 4.3% lift in sales for the six months to the end of January.
Kathmandu defied the Christmas/New Year slump reported by some retailers. For the six weeks to March 11, sales were 7.9% above last year. Same store sales growth was 7.5% for Australia and 5.1% for New Zealand.
Kathmandu is also buying US-based Oboz Footwear for $US60 million cash and earn-out of up to $US15 million.
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