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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.

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Kimberlys will be gone by Sunday

  • News
  • December 11, 2017
  • Sarah Dunn
Kimberlys will be gone by Sunday

Womenswear company Kimberlys was founded in 1983, but it won’t see out the end of 2017 before folding. It went into receivership in October and as a buyer has failed to come forward, all remaining Kimberlys stores will close on December 17.

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In store music matters

  • In Association with OneMusic
  • December 11, 2017
In store music matters

Music. It’s always there, but it’s not often we stop to think about the effect it has on our environment. Mark Cowie, New Zealand operations manager for Recycle Boutique talks about how they use music targeted to their demographic to add to the in-store experience.

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Oroton luxury bags put into administration

  • News
  • December 8, 2017
Oroton luxury bags put into administration

Oroton Group, owners of luxury accessories chain Oroton, entered the brand into administration at the end of November. The chain is set to operate as usual until a decision is reached regarding the brand's future.

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Expected retail trends for 2018

  • Opinion
  • December 7, 2017
  • Courtney Devereux
Expected retail trends for 2018

The retail industry is a fast-paced, uncertain minefield, where retailers must keep up with the latest trends and expectations to survive in the market. This year saw many trends come in and out, but what can retailers expect to face from 2018?

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