Adventure apparel giant Kathmandu has confirmed it is on track to boost its empire significantly over the next few months, backed by strong third quarter sales.
The group reported total group sales for the 13 weeks from January 28 to April 28 at $89.7 million. The figure translates to a lift of 12.5 per cent on the equivalent 13 week period in 2012 at constant exchange rates.
Same store sales for the same period rose 4.1 per cent on 2012 at constant exchange rates, with sales through to end of March impacted by warm and dry autumn in both Australia and New Zealand, according to the company.
Kathmandu also confirmed that the company stands by its guidance for 2013 full year sales and remains confident of a strong performance for the fiscal full year 2013.
In addition, the company has provided an update on its key areas of opportunity and on-going investment, including:
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Store rollout: 170 store target for Australia / New Zealand, at least three years ahead.
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Existing store network improvement: A portion of existing portfolio to be re-aligned to its market and product positioning.
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Online and digital: Key to profitable expansion into international markets.
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Enhanced product offering: Focus on improved GMROI supported by improved systems in medium term.
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Summit club: Target of one million active members achievable by end 2015, and further potential to grow, especially in Australia.
Kathmandu will also continue with its company-wide re brand, which has seen 112 stores switched over to the new branding,.
The company said the coming months will see most of its other stores converted also, with less than 10 stores to remain to be re-branded by the end of fiscal year 2013.
The ongoing re-brand across Kathamndu's retail network will be split into three categories:
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1. Flagship stores
• External signage application is more prominent due to sites being larger.
• Much more prominent use of brand Icon throughout store including sub category signage and fixture suite up scaled.
• Up scaled visual merchandising and large brand graphic application.
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2. Mall and Small Formats
• External signage application is usually based on mall guidelines.
• Use of brand icon over counter only.
• Visual merchandising reduced in scale & where possible brand graphics applied.
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3. Outlet stores
• Outlet branding differs to any other format (colour and sub branding).
• Use of brand icon over counter only – where possible.
• Fixtures scaled back to basics.
• Visual merchandising is to a minimum.