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

 

Kathmandu climbs to 4-month high on upgraded profit outlook


By Paul McBeth

Aug. 8 (BusinessDesk) - Kathmandu Holdings' shares jumped to their highest level since April after the retailer said annual profit rose as much as 13 percent on faster sales growth across the Tasman and new contributions from its Oboz Footwear acquisition.

The outdoor equipment chain said normalised net profit was $55.5-$57 million in the year ended July 31, up from $50.5 million a year earlier, with total sales up 9.6 percent at $545 million. The audited results will be released in September. Same-store sales increased 0.6 percent on a constant exchange rate basis as a 2.7 percent increase in Australia offset a 3.9 percent decline in New Zealand.

"We were particularly pleased with the second half performance in Australia, given we were cycling strong growth in our key winter period last year. New Zealand conditions were challenging," chief executive Xavier Simonet said.

"Oboz, acquired in April 2018, continued to deliver strong sales and ebit (earnings before interest and tax) growth in 2H, with continued progress anticipated in FY2020 and beyond."

Kathmandu's second half showed Australian same-store sales growth accelerating from 1.2 percent in the first half, whereas New Zealand same-store sales deteriorated from their flat level.

The earnings outlook was better than Forsyth Barr analyst Guy Hooper's prediction for normalised profit of $53.2 million, although revenue lagged behind his forecast of $553.9 million.

Kathmandu shares jumped 17 percent to $2.45, but are still down 11 percent so far this year. Kathmandu has been a laggard among listed retailers, with Hallenstein Glasson shares up 28 percent so far this year, Warehouse Group up 12 percent, Briscoe Group increasing 3 percent, and even perennial straggler Smith City Group only down 1.8 percent.

That hasn't deterred Accident Compensation Corp's investment team from taking a substantial shareholding in the retailer, with the state-owned workplace insurer lodging a notice of its 5 percent stake on July 31.

The retailer also said net debt was $19.2 million at July 31, down from $31.4 million a earlier.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise. More>>

ALSO:

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>