Kathmandu expects profit drop
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.