Kathmandu posted an 11 per cent decline in full-year profit as its gross margin shrank though the results showed an improvement in second half trading and the outdoor equipment chain said it expects a better performance in 2013. The shares gained 5.9 per cent.
Profit fell to $34.9 million, or
17.2 cents a share, in the 12 months ended July 31, from $39 million, or 19.2 cents a year earlier, the Christchurch-based company said in a statement. Sales rose 13 per cent to $347 million. Same-store sales rose 5.7 per cent.
The full-year results highlight a better second-half performance after first-half profit plunged 43 per cent as competition for retail dollars squeezed margins.
Chief executive Peter Halkett said the company expects "an improvement in performance in FY13" provided there is no further deterioration in economic conditions.
"It's a good result. They had a difficult result in the first half - the thing about retail is your costs don't change much between halves but sales can be completely different," said Matthew Goodson, a portfolio manager at BT Funds Management.
