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Kathmandu shares gain as sales momentum stays

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

Shares in Kathmandu rose 2.2 per cent after the outdoor equipment retailer said it kept its pace of sales growth through the third quarter, without firming up annual earnings guidance.

The Christchurch-based retail chain lifted sales 13 per cent to $89.7 million in the 13 weeks ended April 28, retaining the momentum in revenue growth from the first half of the financial year, according to slides accompanying chief financial officer Mark Todd's presentation to the Macquarie Connections Australian conference published on the stock exchange.

Same store sales rose 4.1 per cent in the period from a year earlier, and were impacted by an unseasonally warm and dry autumn in the end of March.

The shares rose 5 cents to $2.30, and have climbed 16 per cent this year. The stock is rated an average 'outperform' based on 10 analyst recommendations compiled by Reuters, with a median target price of $2.45.

The retailer said it is "confident of a strong performance for full year FY13" without updating its commentary at the first half result, when it didn't give annual guidance.

The company has previously said it expects to get 60 per cent of sales and at least 70 per cent of earnings in the second half and that its full-year profit would beat the 2012 result.

- BusinessDesk

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