Adventure apparel retailer Kathmandu has flagged a new era for the brand, following a solid 10.6 per cent lift in sales for the company for the full fiscal year 2013.
The company reported a net profit of $NZ44.2 million ($A39.79 million) in the 12 months to the end of June, compared to $NZ34.9 million last year.
Same store sales growth was up 5.6 per cent at comparable exchange rates, with a total sales rise of $NZ 36.9 million on last year, to $NZ384 million. Gross profit margin remained relatively steady at 63.0 per cent.
Online sales growth of 55 per cent contributed over four per cent of total sales, but Kathmandu CEO Peter Halkett confirmed that the growth of this channel with be a main focus going forward.
“This was a good result given the difficult retail environment. It was pleasing to achieve positive same store sales growth over the year. Operating expenses reduced as a percentage of sales compared to FY2012, which also contributed to earnings growth,” he said.
“We will continue to invest in our store network through opening new stores and relocating or refurbishing existing stores in Australia and New Zealand.
“Maximising the return on the investment made in inventory and store space remains
a key focus while continuing to effectively manage operating costs. Kathmandu will continue to invest in systems infrastructure to grow our online sales, given the opportunity presented by this channel.
“We [also] expect the growth opportunities available to us online to be enhanced further as we offer an improved customer experience by utilising our CRM capabilities.”
Halkett further commented that “sales growth in the UK and other markets globally will be focused on driving brand awareness in the online channel, supported by launching the Kathmandu brand in web based marketplaces such as Amazon, where Kathmandu UK has just launched a selected product range.
He concluded by saying that “providing there is no deterioration in economic conditions, Kathmandu expects another solid performance in FY2014.”