Sales are flat, but profits are up, at Kathmandu

Chris McGrath/Getty Images

Adventure retailer Kathmandu squeezed a 6.4% increase in after tax profit to $NZ10 million ($A9.1 million) on flat sales and despite foreign currency fluctuations.

CEO Xavier Simonet says the first half result is in line with expectations, with strong same store sales growth of 5% in Australia and rigorous cost controls.

Revenue from its 162 stores for the six months to January was up just 0.2% to $NZ196.32 million ($A179 million) but also within forecasts.

“We have had a solid start to FY17, but as always the success of our full year result will hinge on key sale periods that fall in the second half,” Simonet says.

The results was weighed down by $NZ4 million ($A4.65 million) in adverse foreign currency movements.

An interim dividend of NZ 4 cents a share was declared. The dividend will be unfranked for Australian shareholders and fully imputed for New Zealanders.

In September the company posted 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).

The retailer in 2015 posted a 51.7% slump in profit to $NZ20.4 million ($A19.8 million) after a series of sales promotions which confused customers.

The 2017 first half results at a glance:

Source: Kathmandu

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