1 Aug 2014

Kathmandu thankful for cold month

9:22 pm on 1 August 2014

Kathmandu says its annual results won't be as bad as it had previously warned, thanks to a cold July which sent shoppers flocking into its stores.

The outdoor clothing company had warned last month that operating earnings would probably be down by between 10 and 15 percent.

Kathmandu said it now expects that, at worst, operating earnings for the year ended July should be down less than 2 percent, and could even be more than 3 percent higher.

The company said net profit for the year will be down less than 11 percent and the decline could be less than 4 percent. Its actual sales of nearly $292 million for the year were down only 2.3 percent on the previous year's sales.

Sales though stores open 12 months or more were up 4.2 percent at constant exchange rates - the company has stores in New Zealand and Australia.

Chief executive Peter Halkett said in a statement that temperatures in July were generally colder in both countries. Since 24 June, Kathmandu recovered a significant portion of the shortfall in sales it experienced in the early part of winter.