Kathmandu tips lift on “healthy earnings growth”

Kathmandu_Rundle 4Outdoor apparel retailer Kathmandu Holdings anticipates a 20 per cent lift in first-half profit after “healthy earnings growth” during the Christmas trading period.

Kathmandu expects group net profit after tax for the first-half of FY2018 will be no less than $12.0m (1H FY2017 $10.0m) while total sales for 1H FY2018 will be approximately $204 million compared to $196.3 million for the comparative prior period.

Total sales will be approximately $204m versus $196.3m, it said.

The company had previously said the first half net profit would be “above” last year.

“Striking the right balance in the key Christmas trading period between generating sales growth and improving our gross margin has fuelled healthy earnings growth,” chief executive Xavier Simonet said in a statement to the stock exchange.

”We have also continued to strengthen our balance sheet position during the first half.”

Kathmandu also said group same-store sales for the 25 weeks ending January 31 were down 0.8 per cent at constant exchange rates.

In its largest market Australia, same-store sales grew by 1.9 per cent while in New Zealand they fell 6.4 per cent.

The company is due to report its first-half result on March 20.

The shares were unchanged at $2.39 and have risen 27 per cent over the past 12 months.

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