Lockdowns bring heavy weather for Kathmandu
A SPIKE in Ripcurl wetsuit sales over winter was one of the rare highlights for outdoor clothing and equipment group Kathmandu.
The group posted an 85 per cent fall in annual profit as Victoria’s Stage 4 lockdowns, and closures in Hawaii, Bali and at airports caused several crucial anchor stores to cease trading.
But chief executive Xavier Simonet is expecting to see sales pick up as stringent anti-coronavirus lockdowns ease and people start heading outdoors.
“Our brands are well positioned to capitalise on increased participation in outdoor, beach and surfing activities following the end of the lockdowns,” Mr Simonet said.
The group, which bought the Torquay-based Ripcurl brand a year ago from founders Brian Singer and Doug Warbrick, posted a net profit of $NZ8.1m for the 12 months ending July 1.
Kathmandu’s Australian sales for the year were down 11.6 per cent, with 117 stores being forced to close between April and May.
But online sales were up 67 per cent on the previous year, with the company noting stores closures had increased its digital penetration.
Kathmandu said retail sales started to recover as restrictions eased.
“COVID-19 has continued to impact some key markets during the first seven weeks of FY21, with Melbourne, Auckland, Hawaii, Bali and airport store closures,” the company said.
“However, given postlockdown retail store performance in FY20, demand is expected to return in these markets when stores reopen.”
Mr Simonet said Kathmandu was “consolidating” and would be reviewing the profitability of each of its stores.
The company has decided not to issue a dividend to shareholders for the 2020 financial year.
Its Oboz outdoor footwear company was impacted by about $NZ15m from the pandemic.