NEW ZEALAND: Kathmandu has announced that its financial results for the six months to January 31, 2011 are to be well up on the previous corresponding period.
The outdoor lifestyle retailer expects that group sales for the period will be in the range of NZ$124 to NZ$126 million, which is up between 16.3 per cent and 18.2 per cent on the previous year.
It reported that a same store sales increase will be between 8.9 per cent and 10.3 per cent, or 7.5 per cent to 8.8 per cent at constant exchange rates.
The company's earnings before income tax will be between $NZ18.5 and $NZ19.5 million, up 20 to 26 per cent on the prior year.
Kathmandu chief executive officer Peter Halkett said that strong sales performance in December 2010 and for the month to date in January, coupled with improved gross margins have been the primary reasons for the improvement.
"However our overall profit result for the full year will remain dependent on second half year trading, when historically approximately 60 per cent of Kathmandu's full year sales are made," he said.
Kathmandu will release its official results on March 17.