Shares in Kathmandu surged almost 5% on Tuesday, after the company announced better than expected sales will lead to an increase in earnings this year.
The outdoor equipment and clothing retailer says it made sales of $306 million in the year to the end of July, up a quarter on the previous year, as it expanded its product range and opened new stores.
Sales at stores open more than a year rose almost 16%.
Pre-tax earnings are expected to increase by as much as 36%, to $63 - $65 million.
Chief executive Peter Halkett says it's a good outcome considering the uncertain economic environment and is due to ongoing growth in its product range and new store rollouts.
Mr Halkett says the autumn and winter weather was also a positive and the strong Australian and New Zealand dollars prompted more people to travel overseas.