US footwear venture rewards Kathmandu
Buying United States based shoe company Oboz Footwear has proven to be a winner for outdoor adventure wear retailer Kathmandu.
The shoe company’s sales increased 30 per cent, buoying Kathmandu’s overall results for the year to July 31.
Kathmandu’s after-tax profit rose 13.6 per cent to $57.6 million, slightly higher than forecast in August.
Kathmandu’s share price was up 5.7 per cent to $2.95 in afternoon trading but this was still 12.7 per cent down on a year ago.
Australia’s love of puffer jackets also helped deliver a boost in profit to the outdoor clothing retailer, despite the warmer than normal winter.
However, Kathmandu’s fortunes in New Zealand have been less positive, with a drop in sales for the second year running.
Overall sales were down 3.1 per cent and same store sales were 3.9 per cent lower compared with the previous year.
Chief executive Xavier Simonet said the company would focus on increasing foot traffic in the key New Zealand centres with the aid of new flagship stores.
Engagement with customers would be increased through its membership programme, social media and digital marketing.
Chief operating officer Reuben Casey said the sales results reflected that New Zealanders were more price sensitive.
The late start to the New Zealand winter impacted sales of warm clothing but recovered strongly with colder weather in the second half of July and into August, Casey said.
Sales in New Zealand did go up and down more than in Australia, he said.
Casey said it was a competitive market on both sides of the Tasman. ‘‘People don’t spend for no reason at all so it is not getting any easier for anyone out there.’’
Online sales were strong, up 9.2 per cent to $48.4m after a revamp of its website.
The company also introduced a new store concept at its flagship shops in Christchurch and Newmarket, which included mobile charging stations and new lighting, Casey said. The new design would be progressively rolled out across the other stores.