Kathmandu has managed to remain in-line with its forecast for FY2017, achieving $NZ10.0 million in net profit after tax and increasing overall sales by 0.2%.
“The results for the first half of FY2017 were overall in line with our expectations. It is pleasing to exceed last year’s first-half net profit while absorbing c. $4m of adverse foreign currency impacts in gross margin," Kathmandu CEO Xavier Simonet said.
Australia remained the company's strongest market, with total sales growth increasing by 6%, while UK sales plummeted by 57% following the closure of three stores last year.
Online sales were boosted by the launch of a more responsive website in November last year which saw online sales grow by 18%, resulting in online sales reaching 7.4% of total sales.
Simonet said the continued success for the full year will depend heavily on the key sales periods that fall in the second half.
“We have had a solid start to FY17, but as always the success of our full year result will hinge on key sale periods that fall in the second half.
"The Australasian business provides the foundation for our brand to expand internationally. As we look forward past FY17, I am excited about the progress we are making towards securing new international wholesale relationships.”