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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news