Outdoor retailer Kathmandu has lifted net profit by 23% to $NZ12.3 million for the first half of fiscal 2018.
CEO Xavier Simonet said the results were achieved striking the right balance between generating sales growth and improving the company's gross margin.
"Sales momentum improved through the end of the Christmas trading period and into February and March.
"Our financial position continued to strengthen during the first half year and we ended the period with healthy inventory and record low half year debt."
The retail chain reported a $NZ12.3 million net profit in the six months to January 31, and a 4.3% lift in revenue to $NZ204.8 million.
Social media traffic was a key source of online sales growth, with a 63% increase in website traffic and 176% jump in online sales attributed to the platforms. Online sales now make up 8% of total sales.
Kathmandu has also listed its products on Tmall Global and Amazon Australia, with wholesale growth through new account Go Outdoors and Sportscheck in Europe.
While Australia continues to be the brand's biggest market, it will continue to pursue new wholesale relationships in Europe this year.
Total sales grew by 3.7% in Australia, while New Zealand sales fell 6.4% impacted by lower levels of clearance stock.
However, group sales have already risen almost 8% in the first six weeks ending March 11 from a year ago.
"We are focused on delivering profit growth in our core markets for the second half of FY18. The Australasian business provides the foundation of our brand to expand internationally.
"As always the success of our full year result is still very dependent on the key promotion periods to come," Xavier said.