KATHMANDU THRIVES ON LIFE IN GREAT OUTDOORS
OUTDOOR adventure gear retailer Kathmandu has delivered four successive quarters of same store sales growth, with the New Zealand based company reporting a near 14 per cent increase in full-year profit.
Kathmandu chief Xavier Simonet said the introduction of new products such as five-in-one raincoats, record low debt levels and increased engagement with customers online had helped the company deliver solid profit growth for a second straight year.
The ASX-listed retailer reported a net profit after tax of $NZ38 million ($34.7 million) for the year to July 31, an increase of 13.5 per cent on the prior corresponding period.
Total sales for the year rose 4.6 per cent to $NZ445.3 million, with same store sales growing 5.5 per cent at a group level and 6.9 per cent in Australia.
Mr Simonet said the retailer was pushing ahead with its wholesale trials overseas following a partnership with German sports retailer SportSheck, the UK’s Go Outdoors and a listing on the Chinese retail site Tmall.
“We are launching with Go Outdoors now in a number of stores with a limited range of apparel and equipment,” he told journalists yesterday.
“We want to launch internationally through a capital light model — we don’t want to own stores internationally at this point in time.”
Chief financial officer Reuben Casey said the brand had put a strong focus on social media marketing during the year, and now boasted 1.7 million “Summit Club” members who were regularly sent retail offers.
“We can see customers interact with various things on social media, follow them through to the website and then follow them through to online sales,” Mr Casey said.
“We have seen a 67 per cent increase in visits to our website which originated from social media.”
The company finished the financial year with less inventory and net debt at a record low of $NZ6.9 million ($6.3 million).
Kathmandu will pay a final fully franked dividend of NZ9¢per share.
Its shares gained 7.4 per cent yesterday to close at $2.10.