21 Sep 2011

Kathmandu profit soars

1:57 pm on 21 September 2011

Australasian clothing and outdoor retailer Kathmandu has more than quadrupled its profit.

The listed company made $39.1 million in the year to the end of July compared with $9.4 million in the previous year when it also incurred $16 million in share float costs.

Sales rose by a quarter to $306 million and a key indicator, sales at stores open at least a year, rose 16%.

Kathmandu had already flagged a stronger result in August due to holding more stock for its three main sales promotions during the year, colder weather in Australia and selling more higher value products like apparel.

The company says the high Australian and New Zealand dollars also worked in its favour by lowering the cost of imports, while more travel by Australasians outside the region boosted demand for its goods.

Store numbers rose from 97 to 111, most of those in Australia, and the company intends to add another 15 shops this financial year, also mostly in Australia.

Looking ahead, Kathmandu says trading remains unpredictable, but it is confident that more stores, new products and refurbishing or relocating shops will underpin growth.