Kathmandu profits rise 13 percent

  • News
  • August 9, 2017
Kathmandu profits rise 13 percent

Australian sales can be to thank for the company’s 13 percent profit rise, after winter sales and winter revenue rose.

Profit was between $37.4 million and $38 million in the 12 months ended July 31, from $33.5 million in 2016, the Christchurch-based outdoor equipment chain said in a statement.

Earnings before interest and tax were in a range of $56 million to $57 million, from $50.9 million in the previous year.

Owned by Briscoe Group, Kathmandu saw sales slump in 2015, when an inventory build-up forced it into aggressive discounting at low margins to clear stock.

Mid 2015, Briscoe Group moved to by the rest of Kathmandu, but was unsuccessful in its attempts even though Kathmandu shares had dropped to $1.72.

Late last year saw Kathmandu’s sales make a comeback with a 64 percent profit jump. A growth in sales was achieved by new products, better inventory management and monitoring promotional activity better, said CEO Xavier Simonet.

Sales grew in Australia and New Zealand with the help of opening five new stores - four in Australia and one in New Zealand.

Online sales grew overall by 15 percent, with online sales making up almost seven percent of the company’s total sales.

The retailer also reduced its inventory to $95.4 million from $113.3 million in 2015.

Now, as the retailer celebrates its third decade in business, it is drawing in on the stories and personal relationships of its customers, encouraging people to share their experiences.

Tim Loftus, marketing manager – global brand at Kathmandu, says the company’s core values have not changed since many years ago, and now the company is slowing down its rapid growth to focus on investment and its customers.

“We’ve spending a lot of time expanding and growing, and now it’s nice to kind of slow down our growth and focuses on what our brand actually means, and what our role in society is actually about.”

Full-year sales rose 4.6 percent to $445.3 million while same-store sales rose 5.5 percent at constant exchange rates, the company said. On that basis, Australian sales gained 6.9 percent and New Zealand sales were up 3.6 percent.

The shares rose 1.8 percent to $2.30.

The company plans to release its full results for the year on September 26.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

How did that happen? The rise of influencer marketing

  • News
  • October 20, 2017
  • Courtney Devereux
How did that happen? The rise of influencer marketing

Something has changed recently that has sent shockwaves through the marketing world. This is, put simply, that the current influencers brands are able to work with are infinitely more humanised, approachable and accessible than ever before.

Read more
 
 

Creating an experience for Halloween

  • News
  • October 19, 2017
  • Courtney Devereux
Creating an experience for Halloween

Halloween is slowly approaching, and while some retailers are doing their bit to stock the themed holiday goods, Look Sharp is adding a spooky experience to its offering to draw consumers in.

Read more
 
 

How to sell to a Kiwi Millennial

  • Opinion
  • October 19, 2017
  • Brad Mcintyre
How to sell to a Kiwi Millennial

Want to sell to youth (and "youth-adjacent") people in New Zealand today? Then you better think differently, says Eventbrite's Brad McIntyre.

Read more
 
topics
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Former Nosh owner Veritas Investments fined

  • News
  • October 19, 2017
  • Sarah Dunn
Former Nosh owner Veritas Investments fined

Just when we all thought the Nosh saga was nearly over, a further complication rears its head. The unprofitable chain of gourmet grocery stores has been embroiled in difficulty relating to its sale by Veritas to Gosh Holdings for most of 2017.

Read more
 
 
 
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email marlene.coote@tangiblemedia.co.nz or call 09 358 7297 / 027 544 2298

View Media Kit

}