Heavy rain a dampener on Kathmandu

expectations’’ or the previous year.

Commentators noted the heavy rain over December in New Zealand may have had something to do with it.

‘‘They’ve been pretty solid in terms of their updates and this is the first particularly negative one they’ve had in a few years,’’ Grant Davies from Hamilton Hindin Greene said.

The share price swing could have also been heightened by light holiday trading and a big spread, the gap between what buyers were paying and Kathmandu shareholders were selling for, he said.

Other clothing companies may also have been affected by the damp December, but few are on the sharemarket.

Hallenstein Glasson tempered expectations of its Christmas Grant Davies of Hamilton Hindin Greene trading at its shareholder meeting last month, even though it saw net profit jump 58 per cent last year.

Davies said Kathmandu would now be focussed on its upcoming Easter sale.

‘‘The sunshine coming out now might be too late for their main sale, but still hopefully that’s going to help.

‘‘It’ll be all about the upcoming Easter and winter sales at this point, and trying to make sure they’re not overstocked.’’

Too much stock was one of the problems behind Kathmandu’s difficult year in 2015 which triggered an unsuccessful takeover bid from major shareholder Briscoe Group.

However, last September the company seemed to be well on the comeback trail, announcing a full year net profit of $50.5 million, an increase of $12.5m. Before-tax operating earnings (EBIT) were up 30 per cent.

Kathmandu chief executive Xavier Simonet said that despite a disappointing Christmas and Boxing Day, it had been pleasing to see an improvement in retail gross margin and continuing strong growth from its recently acquired Obo¯ z footwear business.