Kathmandu rewards staff

Outdoor retailer gives bonus after solid results

KATHMANDU is rewarding staff after the outdoor equipment retailer’s full-year profit surged almost a third to $NZ50.5 million ($46.3 million) thanks to a big jump in Australian sales.

Same-store sales in Kathmandu’s Australian stores rose 7.5 per cent, comfortably offsetting a clearance-driven 2.4 per cent decline in New Zealand, and lifting total sales 11.7 per cent to a record $NZ497.4 million.

Net profit for the 12 months to July 31 rose 32.8 per cent and the retailer increased its final dividend 2.0 NZ cents to a fully franked 11 NZ cents.

Kathmandu will also reward all permanent staff not on an incentive scheme with a $NZ1000 bonus to thank them for helping lift sales.

“This is an acknowledgment of the contribution of all Kathmandu team members to the continued performance and success of our company over the last three years,” chief executive Xavier Simonet (pictured) said.

“FY18 is a record year in terms of sales, profit, and operating cashflow and we believe it is important to recognise the role our team has played.”

The move comes as workers in the retail industry feel the impact of cuts to Sunday penalty rates, which came into effect on July 1.

Mr Simonet hailed the firm’s success in appealing to consumers amid tough trading conditions in the broader retail sector.

“Our customers have reacted positively to innovative products and engaging brand content,” Mr Simonet said. Total sales, excluding newly acquired premium US-based footwear brand Oboz, rose 6.1 per cent, and 4.4 per cent on a same-store basis. Operating expenses decreased as a percentage of sales despite $NZ2 million in costs for the Oboz acquisition and another $NZ2 million for the additional staff bonuses.

“In Kathmandu and Oboz, we have two great brands with significant growth potential in North America and Europe,” Mr Simonet said, adding that the company was looking to expand its offerings in the US market.

Speaking to Fairfax, Mr Simonet said the Oboz acquisition would present a foothold into the potentially lucrative market.

Kathmandu is in talks with the footwear company’s major customers about stocking Kathmandu’s outdoor clothing and accessories in the northern winter of 2019, according to