Kathmandu expects profit drop

 

kathmandu2Sales for adventure clothing retailer Kathmandu have jumped more than 18 per cent but it expects its half year profit to fall.

Kathmandu achieved sales of $NZ84.1 million in the 16 weeks to November 16, up 18.6 per cent on the same period a year earlier.

Excluding the impact of new stores and closures, that growth was 16 per cent.

Acting CEO Mark Todd, said sales in Kathmandu’s post-winter clearance campaign were above expectations and the main driver of strong sales growth.

But this was offset by a decrease in profit margins due to lower prices, and margins in the first half of the financial year are expected to remain lower than in the same period last year, he said.

The company’s half year profit will be dependent on the Christmas trading period, Todd said.

But with operating costs spread evenly across the year and revenue weighted to the second half, earnings are expected to be lower in the half year than in the same period a year ago, he said.

Kathmandu shares were down 12 cents, or 4.5 per cent, at $2.56 at 1147 AEDT.

AAP

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

As FY19 draws to a close, how would you describe your company's full-year results??

Twitter

.@Wesfarmers to purchase @catch_au for $230 million, with @Kmart_Australia and @Targetaus to benefit from the marke… https://t.co/RNsoNC7H0R

2 weeks ago

Australian brand house #Gazal acquired by @PVHcorp in order to have greater control over its brands, such as… https://t.co/lHAdi7mKmg

3 weeks ago

Two thirds of Aussies are looking for discounts online says @PayPalAU, while retailers seek to slow price markdowns… https://t.co/54hjxgpGax

1 month ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered