September 23, 2013

New Zealand retailer Kathmandu posts 27% rise in profit for FY2013

Kathmandu, a New Zealand-based retailer of clothing and equipment for travel and adventure, has reported 27% increase in profit for the fiscal year 2013, as against the same period last year.

By RBR Staff Writer

The revenue was aided with 17 new stores opened during the year, of which eight were opened in the second half.

The chain’s net sales grew 10.6% to NZ$384m for the fiscal year 2013 ended 31 July, compared to NZ$347.1m in the same period last year. Same store sales growth for the period was up 5.6% at comparable exchange rates.

Meanwhile, the retailer’s gross profit margin remained relatively steady at 63%.

Kathmandu chief executive Peter Halkett said the company witnessed strong growth over the period despite difficult retail environment.

"It was pleasing to achieve positive same store sales growth over the year. Operating expenses reduced as a % of sales compared to FY2012, which also contributed to earnings growth," Halkett added.

During the fiscal year, online sales growth of 55% contributed over 4% of total sales.

Geographically, Australia and New Zealand both performed strongly, delivering positive comparable sales growth on the previous corresponding period.

In the second half of the fiscal year 2013, the outdoor retailer opened eight new stores and closed two stores in the UK as part of business transformation. Kathmandu further plans to open 15 new stores this year to expand its retail network.

Kathmandu chief executive Peter Halkett said the company will continue to invest in its store network through opening new stores and relocating or refurbishing existing stores in Australia and New Zealand.

Geographically, the company along with its subsidiaries operates in Australia, New Zealand and the UK.

The company offers shirts, trousers, gloves, fleece, t-shirts, socks, underwear, footwear, accessories, tents, tent accessories, sleeping bags, beds, outdoor furniture, wallets, cases, shoulder bags and camp beds, among others. It also offers various product designing and distribution activities.