Kathmandu soars on festive sales

Kathmandu has two large sales each year - one in June and July and one around Christmas. Photo / Richard Robinson

The festive season was good for outdoor clothing and equipment store Kathmandu, which says its performance for the six months to January will be stronger than the same period last year.

Kathmandu said yesterday group sales were expected in the range of $124 to $126 million.

Shares rose 25c to $2.05 on the NZX yesterday.

Chief executive Peter Halkett said strong sales in December and January in Australia and New Zealand, coupled with improved gross margins, had been the main reasons for the expected year-on-year increase.

"We have been pleased with our trading performance throughout the Christmas period.

However our overall profit result for the full year will remain dependent on second half year trading, when historically approximately 60 per cent of Kathmandu's full year's sales are made," Halkett said.

Group sales for the six months to January 31 are expected to be up 16.3 to 18.3 per cent on the previous comparative period.

The increase in same store sales will be between 8.9 and 10.3 per cent.

Earnings before interest and tax is forecast to be between $18.5 million and $19.5 million - up 20 to 26 per cent - on the previous comparative period, prior to initial public offering costs associated with that period.

Kathmandu chief financial officer Mark Todd said the company would release its full half year results on March 17.

Todd said summer sales had lifted Christmas earnings. Kathmandu holds two large sales a year, in June-July and in December-January.