Kathmandu seeks growth
OUTDOOR apparel and equipment retailer Kathmandu has bought a US hiking boots company as it dips it toe back into international expansion.
Kathmandu has agreed to buy Montana-based hiking boots wholesaler Oboz for $US60 million ($A77.7 million) in its first international acquisition since it closed its lossmaking British bricks-andmortar stores and scrapped plans to expand into Europe about three years ago.
Kathmandu chief executive Xavier Simonet — then new to his post — decided on the UK and Europe retreat to focus on the core Australian market, which was struggling with sales and profit declines.
He said at the time any international expansion would be through less-risky online or wholesale models rather than physical stores.
At that time, Kathmandu’s shares were at an all-time low following a string of profit downgrades and it faced a hostile takeover bid from New Zealand retailer Briscoe Group.
Mr Simonet successfully fended off Briscoe and revamped the group’s product range, leading to a sales and profit recovery that began in 2016. Yesterday, after unveiling a 23 per cent lift in first half profit, Mr Simonet said the time was now right to pursue international expansion. He said there was a need to find new growth opportunities be- cause while Australia still had room for growth, its other market New Zealand did not.
“Acquiring Oboz is consistent with our international growth strategy to pursue a lower risk model because Oboz is a pure wholesale player,” he said.
“It also advances Kathmandu from being an Australasian retailer to being a global outdoor apparel and equipment brand.”
Oboz, which designs, sources and sells footwear for backpackers and hikers, distributes its products primarily to North American outdoor and sporting goods chains and some online sellers.
It has been a Kathmandu supplier for the past 10 years but the idea of a Kathmandu takeover was raised two years ago, Mr Simonet said.
Kathmandu shares remain in a trading halt while a share placement to fund the Oboz deal is conducted.