Adventure apparel giant Kathmandu has flagged an uplift in trading performance for first half of the 2013 financial year.
The inkling rests on the back of strong sales growth and satisfactory trading performance during December 2012 and January 2013.
Kathmandu confirmed its expects a lift of 13.1 per cent in total group sales for the period.
The increase would see total group sales for the half year reach approximately $165.8 million, compared to $146.7 million in the prior comparative period.
The company also reported same store sales growth for the 26 weeks ended January 27, 2013 was 6.1 per cent on a constant currency basis.
Given this sales performance, and gross margins which are expected on a consolidated basis to be similar to the previous year, Kathmandu estimates that first half earnings for the fiscal year 2013 performance will be in the following range:
• EBITDA NZ$20.5 to $21.5 million (last year $17.0 million)
• EBIT NZ$15.5 to $16.5 million (last year $12.7 million)
• NPAT NZ$9.5 to $10.5 million (last year $6.0 million)
Commenting on expectations, Kathmandu CEO Peter Halkett said that the company's trading performance during the key Christmas and January period had been generally in line with management expectations.
“Our sales in Australia have continued to grow at a faster rate than New Zealand, which reflects the continuing strengthening of the Kathmandu brand and market penetration in Australia,” he said.
However, Halkett added that Kathmandu’s overall profit result for the full year remains primarily dependent on second half year trading.
“We continue to expect approximately 60 per cent of sales and 70 per cent or more of earnings to be made in the second half of the financial year, and as our store roll out continues the dollar amount of our sales and earnings that is dependent upon our second half performance, will increase,” he said.
“Given this trading pattern and the volatile nature of the retail trading environment, we remain cautious about our full year result. In accordance with our normal practice, we will not be providing full year earnings guidance.”
Kathmandu has opened nine new stores to date during the 2013 fiscal year, with approximately 15 new stores expected to open in this financial year.