Kathmandu announces structural review

Kathmandu Holdings (ASX/NZX: KMD) today announced an immediate review of its Head Office structure.

The company will closely review costs and structures in recognition of a significant reduction in profitability in FY2015, compared to FY2014 and previous years.

Kathmandu expects the review may result in reduction of up to ten per cent of employees in its Australian and New Zealand Head Offices.

Kathmandu’s Chief Executive Xavier Simonet said the company was taking decisive action to address the recent underperformance in sales and profit and was looking at all areas of the business.

"I am confident the outcome of the review will enable us to continue to invest in our growth strategies and deliver improved results for our shareholders, "Mr Simonet said.

The company has already identified a number of key areas to improve performance, including:

- Increased efficiencies with cost reductions in all areas of the business

- Increased focus on innovative and distinctive products

- The optimisation of the existing store network

- The activation of Summit Club members

- Improved digital and social media communication, and omni-channel trading functionality

- Leveraging the capabilities of new systems and infrastructure

- The identification of international opportunities through a capital-light model and leveraging of the online platform

Mr Simonet said by focusing on these areas the future potential of the Kathmandu brand could be realised.

The review will be completed by the end of September.