Kathmandu has released an update to its sales and earnings for FY2019, reporting that it is on track to deliver record profit.
Based on unaudited results from FY2019, the business has reported a 9.6% increase on total sales to NZ$545 million compared to FY2018.
The business credited a strong winter business for the result, with its acquisition of footwear brand Oboz also allowing it to trade across warmer seasons.
Overall the business' same store sales (SSS) grew by 0.6% at constant exchange rates in FY2019. The Australian SSS increased by 2.7% however, the New Zealand SSS declined by 3.9%.
Net debt for Kathmandu was NZ$19.2 million in FY2019, compared to net debt in FY2018 of NZ$31.4 million.
Kathmandu’s MD and CEO Xavier Simonet said that while growth in Australia was positive, the retail climate in New Zealand proved a challenge.
"We were particularly pleased with the second half performance in Australia given we were cycling strong growth in our key winter period last year.
"New Zealand conditions were challenging.
"Oboz, acquired in April 2018, continued to deliver strong sales and EBIT growth in 2H, with continued progress anticipated in FY2020 and beyond."
Kathmandu is scheduled to release its audited results for FY2019 in late September.