Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kathmandu first-quarter sales rise 19.5%

Kathmandu first-quarter sales rise 19.5% though Christmas key to 1H earnings

Nov. 16 (BusinessDesk) - Kathmandu, the outdoor equipment retailer, said first-quarter sales rose more than expected in the first quarter though growth in first-half profit hinges on a successful Christmas and New Year sales period. The shares climbed 4.1 percent.

Sales rose 19.5 percent to $66.9 million in the 15 weeks ended Nov. 11 while sales at stores open at least 12 months gained 14.3 percent, the company said in presentations for its annual meeting today.

“Trading to date gives us confidence and is ahead of our YTD targets, but earnings growth is still almost all expected in 2H FY13,” the company said. “Providing there is no further deterioration in economic conditions, Kathmandu continues to expect an improvement in performance of our business in FY13 over FY12.”

Shares of Kathmandu rose 7 cents to $1.80 and have declined 2.3 percent this year. They are rated ‘outperform’ based on 10 recommendations compiled by Reuters. At today’s price the stock has a dividend yield of 8.78 percent, more than twice the average return on a one-year term deposit, according to interest.co.nz.

“Despite the difficult retail trading conditions, our sales performance in the first 15 weeks of the financial year has overall been ahead of our expectations, particularly in Australia,” said chief executive Peter Halkett. “Growth in first-half profit remains highly dependent on the Christmas and January trading period.”

The retailer has opened six new stores in Australia in the latest period and aims to have three more open before Christmas. The target for full-year 2013 is to open 15 new stores.

Chairman James Strong told shareholders economic prospects both globally and in Australasia “have to be viewed with caution.”

Still, “there is no change to our view that the Kathmandu brand has genuine potential to be a significant global presence in the outdoor travel and adventure market,” he said. “We are very clear that in the short term our key strategy remains to invest and grow the business and build the Kathmandu brand in the Australasian market.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news