Kathmandu tips first half profit to rise 20% on higher sales

Kathmandu tips first half profit to rise 20% on higher sales, wider margins

By Rebecca Howard

Jan. 24 (BusinessDesk) - Kathmandu Holdings, the outdoor equipment retailer, expects a 20 percent lift in first-half net profit on a 4 percent lift in total sales and wider gross margins.

The Christchurch-based company said it expects that net profit will be at least $12 million in the six months to Jan. 31 versus $10 million in the first half of the 2017 financial year. Total sales will be approximately $204 million versus $196.3 million, it said. The company had previously said the first half net profit would be "above" last year.

“Striking the right balance in the key Christmas trading period between generating sales growth and improving our gross margin has fuelled healthy earnings growth. We have also continued to strengthen our balance sheet position during the first half," chief executive Xavier Simonet said in a statement to the stock exchange.

Kathmandu also said group same-store sales for the 25 weeks ending Jan. 31 were down 0.8 percent at constant exchange rates. In its largest market Australia, same-store sales grew by 1.9 percent while in New Zealand they fell 6.4 percent.

The company is due to report its first-half result on March 20.

The shares were unchanged at $2.39 and have risen 27 percent over the past 12 months.

(BusinessDesk)

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