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HomeNEWSKathmandu proceeds to expand after a good financial year

Kathmandu proceeds to expand after a good financial year

Premium outdoor brand, Kathmandu, has released its full year earnings for 2017. The brand continues to strengthen in Australia, as well as raising capital to purchase US footwear chain, Oboz.

Premium outdoor brand, Kathmandu, has released its full year earnings for 2017. The brand continues to strengthen in Australia, as well as raising capital to purchase US footwear chain, Oboz.

Continuing to leap forward from the brink of collapse, Kathmandu has released another year of growth for 2017. The company feel upon hard times in 2015, but saw a 64 percent profit jump in 2016.

For the full year ending 2017, Kathmandu saw sales of $445.3 million, a rise of 4.6 percent when compared to the previous year. Alongside that, the company’s profit after tax sits at $38 million, up by 13.5 percent.

Same store sales growth for New Zealand saw an increase of 3.6 percent, while Australian store sales over took our own by 6.9 percent.

The retailer also saw growth of online sales (15.9 percent), as well as their Summit club membership (127,000 increase).

Online was an important focus for the group in 2017, who said in the report that “Sales growth was driven by innovative new products and inspiring digital content.”

The company has now see four quarters of same store growth, as well as opening four new stores across the ditch.

For the company as a whole, gross profit was up 3.7 percent to $276.2 million. The only thing that the company saw a decrease in net debt, which decreased by 81.3 percent, down to a record low of $6.9 million.

Kathmandu has also made further efforts to increase its sustainability measures, some which included partnering with bluesign to reduce the harmful chemicals used in its manufacturing.

As well as having a good financial year, Kathmandu has made the effort to buy US group Oboz.

According to the report, the company announced the buying of the footwear chain for $77.7 million.

Oboz designs, sources, and sells footwear for backpacking and hiking. Currently it distributes its products directly to North American outdoor chains, limited online sellers and show and sporting goods stores.

Kathmandu and Oboz have worked in partnership for over 10 years, with Kathmandu historically being the second customer of Oboz when the brand launched in 2007. Kathmandu is currently the exclusive retailer of Oboz in Australia and New Zealand.

In order to raise capital for the purchase, Kathmandu used institutional share placement. The shares were issued at $2.16, a 10 percent discount to the closing price of $2.40 on March 19. $40 million was raided by the company.

Briscoe Group, who holds a large chunk of Kathmandu, is looking to further increase its investment in the company.

Briscoe Group participated in the capital raising announced by Kathmandu Holdings, buying 2.57 million shares from the institutional placement for a cost of $5.6 million. Kathmandu share price has jumped 22 cents in the last year.

Chief executive Xavier Simonet, said the acquisition “enables the Kathmandu Group to accelerate our international growth, and diversifies our product mix, geography and channels to market.”

Oboz founder John Connelly will continue to lead Oboz from Bozeman, and will report to Simonet.

The company invested $8.7 million in capital projects in the first half, mostly to update its stores, ahead of the $6.8 million invested in the year-earlier period. It said working capital efficiencies led to record low net debt of $17 million, versus $48.9 million the year earlier period, lowering its finance costs.

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