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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news