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Kathmandu first-half profit climbs 6.4%

 

Adventure equipment retailer Kathmandu has boosted first-half profit 6.4 per cent to $NZ10 million ($A9.1 million) following healthy sales growth in Australia and online.

Net profit for the six months to January 31 rose from $NZ9.4 million over the same period a year earlier, with sales up 0.2 per cent to $NZ196.3 million - and up six per cent in Australia.

Online sales were also up by almost one fifth, comprising 7.4 per cent of total sales.

Chief executive Xavier Simonet said the results were broadly in line with the group's expectations despite a $NZ4 million hit from foreign currency movements.

"We have worked hard to minimise the impact of currency on our gross margin through sourcing negotiations, product newness, price action, improved stock management and cost control," he said.

"Maintaining gross margin and operating efficiency will continue to be a key focus."

Kathmandu opened two new stores in Australia in the last year and closed one, while shutting three in the United Kingdom in an effort to grow its international presence through online retail and wholesale partnerships.

"We will continue to expand our store footprint particularly in Australia as return on investment justifies," the company said in its statement to the Australian Securities Exchange.

KATHMANDU FIRST HALF PROFIT RESULTS

Net profit up 6.4 pct to $NZ10m ($A9.1m)

Revenue up 0.2 pct $NZ196.3m ($178.7m

Dividend $NZ 4.0 cents per share, unfranked for Australian shareholders