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Outdoor apparel retailer Kathmandu has released its full year 2019 results, reporting that sales increased 9.7% to $545.6 million compared to 2018. 

The retailer also saw same store sales growth increase by 0.6%, with Australian same store sales up 2.7%, while its footwear business Oboz experienced rapid growth, with sales up 30% to US$44.6 million. 

However, the New Zealand same store sales didn't experience the same growth as Australia and instead declined by 3.9%. Total sales for New Zealand declined by 3.1%. 

Conversely Kathmandu's online channel saw sales increase in FY19, with sales up 9.2% to $48.4 million. The channel now comprises 10.1% of direct to consumer sales. 

Kathmandu also grew its membership – Summit Club – database by 12.4% to 2.2 million customers in FY19. 

Gross profit for the business also increased by 5.4% to $332.5 million. 

Kathmandu CEO Xavier Simonet said that diversification, Australian sales and growth in the Oboz business helped Kathmandu achieve positive results. 

"Over the past 12 months the team delivered another record sales and profit result.

"The key drivers of this growth were a positive contribution from the Australian business, and rapid sales and profit growth from Oboz.

"We were particularly pleased to grow sales in the second half of FY19, even though we were cycling strong Australian sales growth in our key winter period last year.

"At the same time as delivering sales growth, we maintained our focus on cost control, and benefited from wholesale operating cost efficiencies that saw us grow earnings faster than revenue.

"The diversification of our sales channels, brands, products, and markets, underpinned this result," he said. 

To combat the difficult New Zealand market, Kathmandu said that it is focused on driving further foot traffic and conversions to its stores in key flagship locations.

In North America the Kathmandu wholesale business benefited from a $1.3 million establishing investment which has seen the business secure orders for 45 doors and five online sites for FY20. 

Commenting further on the results, Simonet said that the business holds significant international expansion potential. 

"Oboz has accelerated our transformation from a leading Australasian retailer to a global, brand-led, multi-channel business, and has enabled us to diversify our channels, brands, products, and markets. 

"Our entire team is proud to have delivered four years of innovative products, sustained sales and profit growth, strong operating cash flows, and significant value for our shareholders.

"In Kathmandu and Oboz, we have two distinctive brands, with strong fundamentals and significant international growth potential, delivering great quality products to our loyal customers," he said. 

In the first seven weeks of FY20 to September 15 2019, Group same store sales grew 6.1%. Australian same store sales grew 4.0% while New Zealand same store sales increased by 11.7% (at lower gross margins). 

 

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