Retailer weathers storm

Puffer jackets protect Kathmandu from NZ chill

KATHMANDU’S key Australian market appears to be weathering the retail chill, with sales of its signature puffer jackets helping offset a revenue decline in New Zealand and propelling the company to a new full-year profit peak.

The outdoor retailer said net profit for the 12 months to August climbed 13.6 per cent to $NZ57.63 million ($A53.3 million), driven by an almost 10 per cent increase in total sales revenue to $NZ545.6 million ($A505.13 million).

Total sales in the major Australian market were up 4.5 per cent to $A321.4 million, with same-store sales growth of 2.7 per cent.

This slowed from 7.5 per cent same-store sales growth in FY18, which chief executive Xavier Simonet put down to three strong sales years cycling through.

Puffer, or “insulation”, jackets were again the bestsellers in Australia but Mr Simonet said conditions remained difficult for retailers.

“People are talking about (retail) being tougher ... it’s not getting any easier for anyone out there,” Mr Simonet (above) said yesterday.

Regardless, Aussie sales continued to prop up the company’s New Zealand result, where total sales were down 3.1 per cent to $NZ138.6 million for the year and same-store sales growth dropped 3.9 per cent.

Mr Simonet blamed the NZ result on a late start to winter.

On whether he expected revenue to continue to fluctuate due to increasingly variable weather, Mr Simonet said climate change had proven a positive for the business.

“As we know, the weather is getting more variable ... (and) extreme weather events can be quite good for our sales,” he said.

Elsewhere, Kathmandu’s US Oboz shoe business increased FY19 pro forma sales by 30 per cent to $US44.6 million following a successful integration.

“Oboz has accelerated our transformation from a leading Australasian retailer to a global brand-led multichannel business, and has enabled us to diversify our channels, brands, products and markets,” Mr Simonet said.

Excluding Oboz, total Kathmandu group sales increased by 2.1 per cent for the year and 0.6 per cent on a same-store basis.

Summit Club loyalty program members – who represent 70 per cent of total Kathmandu sales – increased by 12.4 per cent to 2.2 million during the year.

The company increased its final dividend by one NZ cent to 12¢.