18 Sep 2018

Record profit for Kathmandu

1:07 pm on 18 September 2018

Outdoor clothing retailer Kathmandu has posted a record profit and is rewarding staff with a bonus.

No caption

A strong revenue boost in Australia and growing online sales help drive the record profit. Photo: Supplied

The company's net profit after tax increased to $50.5 million for the year ended July from last year's $38m.

Revenue lifted 12 percent to $497m, with a strong boost in Australia, growing online sales, and the first contribution of new North American footwear business Oboz. Sales in New Zealand fell but higher profit margins offset the drop.

"We were delighted to achieve record profits this year as we balanced sales growth with gross margin improvement," chief executive Xavier Simonet said.

"Our customers have reacted positively to innovative products and engaging brand content. Continuing to drive sales growth in our core market remains a key management focus."

The company's costs were increased by $2 million associated with the purchase of Oboz in April this year, and another $2m for a $1000 bonus for all permanent staff not on an incentive scheme.

"FY18 (financial year 2018) is a record year in terms of sales, profit, and operating cash flow and we believe it is important to recognise the role our team has played," Mr Simonet said.

He said the company had significant growth potential in North America and Europe.

It will pay shareholders an increased final dividend of 11 cents.

Get the RNZ app

for ad-free news and current affairs