Outdoor retailer Kathmandu has seen a record year for sales and profits, with a 32.9 per cent increase in net profit after tax to $46.39 million, up from $34.91 million the year prior.

The business also saw sales increase 11.7 per cent from $409.1 million to $456.9 million.

“We were delighted to achieve record profits this year as we balanced sales growth with gross margin improvement,” Kathmandu chief executive Xavier Simonet said.

“Sales growth was supported by the success of our key product groups, improved promotional execution, inspiring digital content, and an enhanced in-store customer experience.”

Sales in Australia grew by 9.6 per cent, representing Kathmandu’s largest market, while online sales now comprise 9.4 per cent of total Kathmandu sales.

While total sales fell in New Zealand by 2.3 per cent, this was “more than offset” by improvements in gross margin, with New Zealand gross profit 2 per cent higher than 2017.

The business also announced it would pay an $1000 bonus to all permanent staff who are not already part of an incentive program.

“This is an acknowledgement of the contribution of all Kathmandu team members to the continued performance and success of our company over the last three years,” Simonet said.

“FY18 is a record year in terms of sales, profit, and operating cash flow and we believe it is important to recognise the role our team has played.”

Looking forward, Simonet said management would continue to focus on driving sales growth in Kathmandu’s core market after three years of strong profit growth.

“It’s an exciting time for the business as we welcome Oboz to the Group and accelerate our international growth,” Simonet said, referring to the recently acquired US footwear brand.

“In Kathmandu and Oboz, we have two great brands with significant growth potential in North America and Europe.”

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