Kathmandu FY profit climbs on Aussie sales

Kathmandu’s key Australian market has offset a sales decline in the outdoor retailer’s native New Zealand, helping full year profit climb 13.6 per cent to a new peak of $NZ57.63 million ($A53.3 million).

The ASX-listed firm said net profit for the 12 months to August was up from $NZ50.7 million a year ago, driven by an almost 10 per cent increase in total sales revenue to $NZ545.6 million ($A505.13 million).

The Summit Club loyalty program members – who represent 70 per cent of total Kathmandu sales – increased by 12.4 per cent to 2.2 million.

Chief executive Xavier Simonet said he was particularly pleased with the company’s second half “even though we were cycling strong Australian sales growth in our key winter period last year”.

Total sales in the key Australian market were up 4.5 per cent to $A321.4 million, with same store sales growth of 2.7 per cent.

However, New Zealand sales were down 3.1 per cent to $NZ138.6 million for the year, which the company blamed on a late start to winter, with same-store sales growth dropping 3.9 per cent.

Kathmandu’s US Oboz shoe business also continues to expand rapidly, with FY19 pro forma sales growth of 30 per cent to $US44.6 million following its successful integration.

Excluding Oboz, total Kathmandu group sales increased by 2.1 per cent and 0.6 per cent on a same store basis.

The company increased its final dividend by one NZ cent to 12 cents.

Mr Simonet said sales in August and September had improved in both Australia and New Zealand, with total group sales growth up by 6.1 per cent on a same-store basis.

This includes an 11.7 per cent same store growth in New Zealand and 4.0 per cent in Australia.

The company’s ASX-listed shares were worth $2.63 before trade on Tuesday, down 8.6 per cent from $2.88 a year ago, but have climbed 31.5 per cent from $2.00 after a positive trading update was issued in August.


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