Adventure apparel retailer Kathmandu has bucked the current retail trend, revealing positive results in the lead-up to the Christmas trading period.
The group saw a sales rise of 0.9 per cent (on pcp) to NZ$70.9 million for the first 16 weeks to November 17, 2013. Same store sales, also increased 3.8 per cent.
Both Australia and New Zealand same store sales also achieved a lift of over three per cent.
Commenting on the retailer's latest results, however, Kathmandu CEO Peter Halkett said there could still be troubling times ahead.
“Despite difficult retail trading conditions, our sales performance in the first 16 weeks of the financial year was approximately in line with expectations.
“Consistent with our normal trading pattern, sales to date are less than 20 per cent of our expected total sales for the year. Our first half-year profit result remains highly dependent on the Christmas and January trading period.”
Halkett also updated progress on the company's store rollout and refurbishment programme.
“Since August 1, we have opened two new stores in Australia (Melbourne and Adelaide), and one in New Zealand (Auckland). We also have two further stores (Melbourne and Brisbane) which will be open for trading before Christmas. Our Bondi store refurbishment has been completed and Petone (Wellington) is also undergoing a major refurbishment.”
Halkett also confirmed that Kathmandu is still on track to open 15 new stores in the 2014 fiscal year, with three new sites already secured for opening in the second half of the financial year.
The group also welcomed a new addition to its management set at its annual general meeting today, with David Kirk, Chairman of Trade Me Group set to join the board shortly.