Clothing retailer Kathmandu climbs to three-year high on profit forecast
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Kathmandu shares are at a three-and-a-half year high after the adventure clothing retailer upped its profit forecasts on the back of improved sales.
The stock (ASX:KMD) climbed 14 per cent to $2.65 — it’s highest point since November 2014.
The $520 million company says sales in the first 47 weeks of the year are running 7.7 per cent above last year.
Kathmandu says it expects full year EBIT earnings to be between $72 million and $77 million compared to $57 million last year.
Net profit after tax is forecast between $48 million and $52 million compared to $38 million last year.
“Our second half so far has been strong across both Australia and New Zealand, with Australia experiencing double digit same store sales growth,” says Kathmandu CEO Xavier Simonet.
“The Autumn season and the start of our key Winter promotion have delivered higher sales and profit than planned.
“The successful launch of innovative new products, enhanced in-store customer experience, inspiring content and engagement on social media and digital channels, have contributed to the performance.”
The company posted a 23% rise in profit to $NZ12.3 million on a 4.3% lift in sales for the six months to the end of January.
Kathmandu defied the Christmas/New Year slump reported by some retailers. For the six weeks to March 11, sales were 7.9% above last year. Same store sales growth was 7.5% for Australia and 5.1% for New Zealand.
Kathmandu is also buying US-based Oboz Footwear for $US60 million cash and earn-out of up to $US15 million.