Kathmandu expects to take hit from Oz lockdowns

Kathmandu has been forced to close more than 60 stores in Australia as a result of Covid-19 related lockdowns.

Kathmandu has warned investors that it will take a hit from the latest series of lockdowns in Australia.

The ASX/NZX listed retailer said it expects total sales to be below original expectations at approximately $930 million when it releases its full-year 2021 results, as Covid-19 restrictions continue to disrupt trading across multiple states.

Kathmandu currently has 40 stores closed in New South Wales for a minimum of two weeks, while a further 26 stores will be closed in Western Australia for a minimum of four days from today.

A two-week lockdown in Victoria in early June impacted 62 stores.

EBITDA is estimated at $120m, excluding the impact of IFRS 16, recent IFRIC interpretations, and one-off non-cash items.

The impact of the New South Wales and recent Victorian lockdowns is estimated to be $13m on EBITDA.

Rip Curl, which was acquired by Kathmandu in 2019, continues to trade strongly in North America and Europe, the NZX statement said.

Despite Covid-19-related disruptions, direct-to-consumer sales remain well above pre-Covid levels and wholesale orders received for FY22 continue to show double-digit growth over FY19.

Footwear brand Oboz has seen record sales performance in the second half of FY21.

Newly appointed group chief executive Michael Daly said Kathmandu had had a positive start to winter, which was a key trading period.

"Covid-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu.

"Excluding these impacts, Kathmandu had a solid start to the winter season, and Rip Curl sales momentum continues. Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our Group benefits from a diversified mix of channel and geographies."

Kathmandu resumed its dividend payment for its shareholders after announcing the group increased sales almost 12.9 per cent in the first half of 2021 to $410.7m.

EBITDA for the six months to December 31 was up 19 per cent to $48.2m, while the company posted a net profit after tax of $22.3m - up 194 per cent on the same time last year.