Outdoor clothing and equipment retailer Kathmandu Holdings expects further earnings growth ahead after lifting sales in the first 16 weeks of the year by 9.3%.While total sales rose to $51.6 million in the 16 weeks ended November 21, same store sales were
Outdoor clothing and equipment retailer Kathmandu Holdings expects further earnings growth ahead after lifting sales in the first 16 weeks of the year by 9.3%.
While total sales rose to $51.6 million in the 16 weeks ended November 21, same store sales were up 2.1% during the period, down from growth of 19.2% in the previous corresponding period.
Retail conditions remained challenging in the three geographic markets (Australia, New Zealand, United Kingdom) Kathmandu operated in and uncertainty and volatility still existed, Kathmandu chief executive Peter Halkett said in a statement.
“Given trading conditions, our sales performance in the first 16 weeks of the financial year is reasonable.
“Sales momentum has been steady and we have maintained gross margins”, Mr Halkett said. “
The company’s store rollout and refurbishment program was on track, and Kathmandu was accelerating the roll out of new ranges, supported by product and category innovation.
"Assuming there is no further deterioration in trading conditions, management and the board believe Kathmandu will continue to grow profitably in the year ahead," Mr Halkett said.
First-half results depended heavily on the crucial Christmas/January sales period.
Kathmandu recorded a small increase in same-store sales in New Zealand and the UK. Sales weakened in Australia, its biggest market with 55 stores compared to 36 outlets in New Zealand and six in the UK.
Halkett said there is "much uncertainty and volatility" in the economic and retail environment, with discretionary spending under pressure.
In the year ended July 31, earnings before interest and tax of $47.5 million missed its prospectus forecast of $50.6 million.
