New Zealand based clothing and outdoor retailer Kathmandu has reported a rise in net profit after tax to $8.0 million for the six months ended January 31, 2011 - an increase of $4.4 million on figures for the previous corresponding period.
The company also reported sales up 13.5 per cent to $97.4 million, with total sales growth for New Zealand up 12.4 per cent and up 20.8 per cent in Australia. Sales in the United Kingdom however, fell by 0.9 per cent compared to the same period last year.
Kathmandu chief executive Peter Halket said he was satisfied with the retailer's trading performance for the half year, particularly given the tough conditions in the current retail market.
“Given the retail environment over the period, we consider this a very solid performance,” he said.
“This is the first six-month trading period that reflects the outcome of key growth initiatives, in particular an increased long-term investment in inventory, and we have seen strong ongoing same store sales growth in Australia and New Zealand since early December.”
Halket said the increase in same store sales growth – 12.1 per cent – was partly due to new products and collections the retailer released to the market over the summer period, along with increased availability across its entire range.
Kathmandu opened three new stores in Australia during the trading period in Logan, Queensland, Wollongong, New South Wales and Perth Harbour Town in Western Australia, and has plans to open 15 more stores in Australia and New Zealand before July 31, 2011.
The locations for the upcoming stores include Whakatane, Coastlands and Papanui in New Zealand, and Southport, Toowoomba, Orange (New South Wales), Southland (Melbourne), Belconnen (Canberra) and Whitford City (Perth) in Australia.
However, despite a solid start to the year, Kathmandu will have to garner strong sales during the key winter trading period to push through the second half and deliver a strong annual result. Halket said this will be a challenge for the retailer given its annual trading pattern.
“Winter sales remains our largest annual promotional event, and this means we must successfully execute our strategies until virtually the last day of winter sale before we can be confident about our overall year's result. Nevertheless we've had a successful start and we are now well positioned to improve on our year-on-year performance.”