Kathmandu has announced a net profit after tax of NZ$38 million (AUD$34.7m), an increase of NZ$4.5 million (AUD$4.11m) compared to last financial year.
EBIT increased from NZ$50.9 million (AUD$46.5m) to NZ$57.0 million (AUD$52.1m) for the same period.
Kathmandu CEO Xavier Simonet said a push toward a strong digital strategy, as well as effective cost management, contributed to the strong results.
“We were pleased to achieve strong same store sales growth driven by innovative new products and inspiring digital content. In addition to top line growth, continued cost control and working capital efficiency delivered very solid profit growth.
"Our financial position continued to strengthen during FY2017, and we ended the year with lower inventory and record low net debt.”
Australian total sales growth jumped to 7.9%, while New Zealand reached 3.3%.
Online sales remained an important factor in sales growth, with online now generating 7.5% of overall group sales.
Looking ahead, Simonet said operating efficiency and international wholesale expansion would be key focuses for the next financial year.
“We have now delivered two successive years of strong profit growth and four successive quarters of same store sales growth.
"As a product and brand led business, we are focused on engaging our customers by creating distinctive, sustainable, quality products and by promoting our brand authenticity.
"In the year ahead, we aim to continue to grow in our core markets, with gross margin and operating efficiency a key management focus.
"As we look forward, I am excited about the wholesale trials we are conducting in Europe, and remain committed to developing new international channels for the Kathmandu brand.”