Kathmandu puffing along
OUTDOOR retailer 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 of $53 million.
The company said net profit for the 12 months to August climbed 13.6 per cent, driven by an almost 10 per cent increase in total sales revenue to $505 million.
Total sales in the major Australian market were up 4.5 per cent to $321 million.
Puffer jackets, or “insulation”, were again the bestseller in Australia, but CEO Xavier 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 said yesterday.
Regardless, Aussie sales continued to prop up the company’s result in NZ, where total sales were down 3.1 per cent.
Mr Simonet blamed the NZ result on a late start to winter there.
Elsewhere, Kathmandu’s US Oboz shoe business increased FY19 pro forma sales by 30 per cent to $65 million after 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 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.
Mr Simonet said sales in the first seven weeks of FY20 had improved in Australia and New Zealand, with total group sales growth up 6.1 per cent on a same-store basis.
This includes an 11.7 per cent same-store growth in NZ and 4 per cent in Australia.