Adventure clothing retailer Kathmandu is seeing growth in sales from its winter promotion.
The company now says it expects sales for the year to July to be up 4.6% to $NZ445.3 million with same store sales up 5.5%.
Net profit after tax will be between $NZ37.4 million ($A34.8 million) and $NZ38 million ($A35.4 million) compared to $33.5 million ($A31.2 million) last year.
“Sales continued to grow in our key winter promotion which completed four successive quarters of same store sales growth,” says CEO Xavier Simonet.
“Our financial performance has been strengthened further during FY2017 through operating leverage, reduced inventory and record low debt.”
In March, the retailer posted a 6.4% increase in after tax profit to $NZ10 million ($A9.1 million) on flat sales and despite foreign currency fluctuations.
The retailer returned to profit in 2016 after a series of sales promotions in 2015 which confused customers. Since then Kathmandu has exited its UK sales network.
Kathmandu will release its full results on September 26.
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