Shares in outdoor clothing retailer Kathmandu Holdings hit a six month high yesterday after the company produced a surprise earnings upgrade.
And shares in car parts and leisure group, Super Retail Group (Super Cheap Auto, Ray’s Outdoors, BCF) also did well after it revealed that first-half profits would rise $9.5 million to $25 million.
Super Retail Group shares closed 33c higher, or 7 per cent, to $6.67.
Kathmandu told the ASX in a short statement that it expects to see significantly higher profit in the six months to January 31 on strong sales growth.
The company’s Australian listed shares jumped sharply and were up 2.65 cents, or 18%, at $1.63 at one stage before they eased a touch to end at $1.60.
That was up 22c, or 15.9%, to $1.60, the highest the shares have been since early last August when they fell sharply after a surprise earnings downgrade.
The company said same store sales were up as much as 10.3% in the latest period, and would result in earnings before interest and tax between $NZ18.5 million and $NZ19.5 million ($A14.4 million-$A15.2 million), up to 26%.
The upgrade goes against the trend of downgrades from the sector in the past six weeks to two months from the likes of Noni-B, Harvey Norman, Specialty Fashion Group and The Reject Shop.
