New Zealand shares fell, with Kathmandu Holdings and Xero dropping while A2 Milk Co hit a record high.

The S&P/NZX 50 index dropped 7.63 points, or 0.1 per cent, to 7746.12. Within the index, 22 stocks fell, 18 rose and 10 were unchanged. Turnover was $155.5 million.

Kathmandu Holdings dropped 1.8 per cent to $2.24. On Thursday, the retailer announced full-year profit rose as much as 13 per cent to between $37.4 million and $38m after a successful winter sales season and increased revenue from Australia.

"The week rolling they're down 3 per cent despite that guidance to the market - investors still have concerns about online retailing and weather patterns determining how sales mixes go," said Peter McIntyre, investment adviser at Craigs Investment Partners.

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Xero gave up some recent gains, down 1.6 per cent to $27.36, with Fletcher Building also seeing some profit-taking, dropping 1.1 per cent to $7.88.

"Even though we're trading near flat, we've had reasonable volume through the market," McIntyre said. "I think offshore investors have some more comfort about our inflation data and that the Reserve Bank is not going to increase interest rates, that has probably been bothering some international investors on the basis our dollar could get a lot stronger. So the dollar weakening off has probably been a positive for investing."

Summerset Group led the index lower, down 2.2 per cent to $4.87, while Trustpower fell 2.1 per cent to $5.70.

A2 Milk Co was the best performer on the index, up 3.6 per cent to $4.66, while Synlait Milk gained 0.4 per cent to $4.57. A2 and Synlait released a statement saying the two are confident with the progress of their application to export a2 Platinum infant formula to China from January next year. Sales of the formula currently comprise about 8 per cent of A2's total infant formula sales.

Outside the benchmark index, Eroad gained 2.3 per cent to $2.22. It expects to post record sales in the current financial year as its second generation of technology is embraced by New Zealand firms keen on improving driver safety and as a looming North American compliance regime drives US buyers.

The logistics and fleet management company anticipates New Zealand and the US will be key in reporting record sales in the year ending March 31, 2018.