Kathmandu says Aust lockdowns impacting

Outdoor goods retailer Kathmandu says sales and earnings have been hit by recent coronavirus lockdowns in Australia, particularly in NSW and Victoria.

“COVID-19 continues to be a disrupting factor,” CEO Michael Daly said in a statement on Tuesday.

“Excluding these impacts, Kathmandu had a solid start to the winter season.”

Some 40 stores are closed in NSW due to a two-week lockdown that won’t end until July 9, at least.

Another 26 are closed in Western Australia, which on Tuesday began a minimum four-day lockdown.

The recent two-week lockdown in Victoria earlier in June affected 62 stores.

The NSW and Victorian lockdowns will lop about $13 million off Kathmandu’s underlying earnings.

Group sales for fiscal 2021 are now expected to be below expectations at around $930 million while underlying earnings are forecast at about $120 million.

However, Kathmandu said its surfing brand Rip Curl business still retains an upward sales momentum and is trading “strongly” in North America and Europe.

Kathmandu also owns the Oboz outdoor shoe brand, which is also experiencing strong trading conditions in the northern hemisphere.

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