NEW ZEALAND: Kathmandu has reported "reasonable" financial results for the first quarter of 2010/11.
The outdoorwear retailer revealed sales for the 16 weeks to November 21 totalled $51.6 million, a rise of 9.3 per cent on the corresponding period last year. Like-for-like sales grew by 2.1 per cent in the period.
Kathmandu CEO Peter Halkett said retail conditions remained challenging in the company's three markets, namely Australia, New Zealand and the UK.
“Given trading conditions, our sales performance in the first 16 weeks of the financial year is reasonable. Sales momentum has been steady and we have maintained gross margins,” Halkett said.
The first quarter sales announcement coincided with Kathmandu's annual general meeting, wherein the retailer disclosed it had commissioned in-depth research into its brand.
“We plan to apply these learnings and further strengthen our brand identity, through our store environment, packaging and marketing communication,” Halkett said.
The company also plans to grow its product range by 30 per cent, as well as roll out 15 new stores each year. New store locations confirmed for 2010/11 include Logan (QLD), Orange (NSW), Wollongong (NSW), Whitford Park (NZ) and Perth Harbourtown (WA).
“Assuming there is no further deterioration in trading conditions, management and the board believe Kathmandu will continue to grow profitability in the year ahead.
“It must be noted however that as usual the first half-year profit result will be largely dependent on the Christmas and January trading period,” Halkett concluded.