AUCKLAND: Kathmandu has reported an increase in sales for the 2009/10 financial year despite "challenging" trading conditions, "particularly in New Zealand".
The outdoorwear retailer revealed earnings were in line with its August 4 estimate, with net profit after tax measuring $20.2 million (excluding costs associated with its initial public offering).
Sales for 2009/10 were $196.6 million, up from $175.5 million in 2008/09. The company opened 15 stores in the period, and had a total of 97 stores at the close of the financial year.
Kathmandu CEO Peter Halkett reflected on the company's performance across Australia, New Zealand and the UK.
“We were able to maintain double digit sales growth in all our markets,” Halkett revealed.
“This was achieved despite negative same-store sales performances in our second half-year when general consumer confidence and spending were down on the previous year.”
Halkett said sales in the second half were adversely affected by cycling the Australian government's 2009 stimulus package and “generally unfavourable warm weather”.
The company plans to open an additional 15 stores across Australia and New Zealand in 2010/11, working towards its target store network of at least 150 locations.
“Kathmandu is confident that given reasonable economic conditions there will be further improvement in profitability in the year ahead,” Halkett said.