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Current as of 17/09/14 06:00AM NZST

Christopher Adams

The Business Herald’s markets and banking reporter.

Kathmandu reports big profit jump

Kathmandu is reporting good results from both new stores and existing ones, with half year profits up to $10.3m. Photo / Supplied
Kathmandu is reporting good results from both new stores and existing ones, with half year profits up to $10.3m. Photo / Supplied

Outdoor apparel and equipment retailer Kathmandu has reported a solid lift in half-year profit, boosted by new store openings strong same store sales.

The company said net profit for the six months to January 31 was $10.3 million compared with $6 million in the same period a year earlier.

Earnings before interest and tax lifted 24.4 per cent to $15.8 million, while sales increased 13.1 per cent to $165.9 million, Kathmandu said.

Chief executive Peter Halkett said the strong sales growth in the period was underpinned by solid same-store sales and the successful openings of new stores.

The company opened nine new permanent stores during the half-year period - all of them in Australia.

Halkett said operating expenses as a percentage of sales were lower compared with the same period a year earlier, which contributed to earnings growth.

"Active management of operating costs continues to be a key focus and Kathmandu expects to gain further efficiency improvements in the future," he said.

Same-stores sales lifted 3.7 per cent in the first half, the company said.

Online sales rose 50 per cent on the same period a year earlier, Kathmandu said, although internet sales still represented less than 5 per cent of total revenue.

"Along with the continued growth in online sales, the new stores we opened in a variety of locations and formats have generally met or exceeded our sales expectations," said Halkett.

Shares rose 2c to $2.47 following the result.

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