Kathmandu’s full year financial report saw the clothing retailer secure a profit rise of 13 percent.
The outdoor clothing specialist saw another good year with profit falling between $37.4-$38 million in a year to year likeness - a strong finish for its thrid decade in business.
This was a profit rise of almost five million more compared to the same time in 2016. The rise in profit has been attributed to strong sales, innovative products and cost cuts, as CEO Xavier Simonet marked two years of profit growth and four straight quarters of like-for-like sales growth at his stores.
The market liked what it saw yesterday, and shares in Kathmandu rocketed by 7.4 per cent to close at $2.10. Revenue for the 12 months to July 31 lifted 4.6 per cent to $NZ445.35m, while store count rose by two to 164 outlets.
Full year sales rose 4.6 percent to $445.3 million, while same store sales rose 5.5 percent. The Australian market surpassed our own for sales, gaining 6.9 percent compared to our 3.6 percent.
Simonet said its improved digital content and online platform had contributed to the strong figures.
“In addition to top-line growth, continued cost control and working capital efficiency delivered very solid profit growth,” he said. “Our financial position continued to strengthen during the 2017 financial year, and we ended the year with lower inventory and record low net debt.”
“We have really focused on what we are,” says Simonet. “We are a product and design-led business, so the performance for me was driven by innovative and adaptive products, and when I say adaptive products I mean functional products. That’s what customers want.”
Net debt to equity was 2.1 per cent in 2017, down from 10.6 per cent in 2016. Kathmandu declared a fully franked final dividend of NZ9c a share, up NZ1c from a year earlier.