Kiwi-based outdoor wear retailer, Kathmandu has surprised with a sharp, 20% upgrade to profit guidance for the six months to January 21.
The company told the ASX and NZX yesterday that it expects Group Net Profit after Tax for the first half of 2017-18 “will be no less than $NZ12.0m (1H FY2017 $NZ10.0m).”
And total sales for for the half will be around will be $204 million compared to $196.3 million for the comparative prior period.
The company said that group same store sales for 25 weeks ending 21 January 2018 were down 8% at constant exchange rates.
"In our largest market Australia, same store sales grew by 1.9%, while New Zealand declined by -6.4%“ the company said.
Kathmandu’s Chief Executive Officer Xavier Simonet said “Striking the right balance in the key Christmas trading period between generating sales growth and improving our gross margin has fuelled healthy earnings growth. We have also continued to strengthen our balance sheet position during the first half.”
Kathmandu will release the full result for the half year on Tuesday March 20. The shares rose 0.4% to $2.22.
