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

 


Kathmandu says July cold snap boosted sales, earnings

Kathmandu says July cold snap boosted sales, earnings; shares jump

By Tina Morrison

Aug. 1 (BusinessDesk) - Kathmandu Holdings says a cold snap last month in Australia and New Zealand helped generate more sales than anticipated when the outdoor apparel and equipment retailer announced a profit warning in June. The shares rose 5.1 percent.

The Christchurch-based company said earnings before interest and tax was $62.5 million to $65.5 million in the year ended July 31, from $63.4 million the year earlier. That would be between a decline of 1.4 percent and a gain of 3.3 percent from the year earlier, an improvement from the company's expectation on June 24 that Ebit would likely fall 10 to 15 percent as warmer weather crimped sales of winter products.

"It is pleasing to have delivered a better full year result for FY14 than we were anticipating a few weeks ago when warm winter weather had significantly reduced customer demand," chief executive Peter Halkett said in a statement. "The improvement in sales and earnings in July once colder winter weather became established has resulted in a satisfactory outcome from our key winter sale event."

Shares in Kathmandu jumped 17 cents to $3.50, one of only two stocks to advance on the benchmark NZX 50 Index in morning trade.

Kathmandu said 2014 net profit was expected to be in the range of $39.5 million to $42.5 million, down from $44.2 million the year earlier as earnings were crimped by foreign currency exchange losses and a tax expense relating to an Australian intercompany loan revaluation.

Full-year sales rose 2.3 percent to $392.9 million, while same store sales increased 4.2 percent at constant exchange rates, the company said.

Kathmandu will release its full-year earnings Sept. 23.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news