Kathmandu chief executive Peter Halkett. Photo / Richard Robinson
Kathmandu chief executive Peter Halkett. Photo / Richard Robinson
Kathmandu, the outdoor equipment and clothing chain, said first-half profit will rise as much as 26 per cent after strong sales over December and January, and improved margins.
Earnings before interest and tax will be between $18.5 million and $19.5 million in the six months ending January 31, a gainof 20 per cent to 26 per cent from the same period a year earlier, the company said in a statement today.
The prior-period figures exclude costs of the initial public offering. Sales rose as much as 18 per cent to $126 million while same-store sales climbed as much as 10 per cent.
A strong sales performance in December and January in both Australia and New Zealand, "coupled with improved gross margins have been the primary reasons for the year on year increase," chief executive Peter Halkett said. Full-year earnings growth is dependent on the performance of the second half, which accounts for 60 per cent of annual revenue, he said.
Shares of the retailer rose 6.1 per cent to $1.91, the highest level since October last year. The shares were as high as $2.56 in April last year. The stock is rated 'outperform' based on the consensus of 11 recommendations compiled by Reuters.
The company will release its first-half results on March 17.
