Retailer makes millions in comeback

It posted a $1.8 million loss last year - now, it has made an extraordinary comeback.

Kathmandu has recorded a net profit increase of NZ$9.4 million for the half year.

This saw net profit hit NZ$9.4 million for the six months to January 31.

It follows a loss of NZ$1.8 million made in the same period last year.

Chief Xavier Simonet said the result was spurred by strong front and back-end strategies.

“Operating margin improvement was achieved as a result of increased full price sell through combined with implementing planned cost efficiencies,” he said.

Earnings before interest and tax came in at NZ$15.1 million for the six months to January 31.

This is an increase of NZ$14.5 million compared to last year.

It reported same store sales growth of 4.3% in Australia and 3.1% in New Zealand.

Online sales also rose 23% to account for 6.6% of total sales.

Simonet said while international expansion was on the cards, the retailer will maintain its cost discipline.

"Sustainable growth requires continued cost efficiencies and leveraging existing investments and this will remain a strong focus for management in FY2016 and beyond."