Kathmandu profit driven by Christmas demand
Written on the 24 January 2018 by David Simmons
THE Australian retail sector struggled through 2017, but for some retailers the Christmas period was a serious injection of energy.
Kathmandu (ASX: KMD) was just one of those retailers who cashed in on the 2017 end-of-year trading period.
The listed retailer announced it expects its first-half profit to rise by at least 20 per cent thanks to its success over Christmas.
The company expects net profit of at least $12 million when it reports on March 20, with total sales rising to $204 million from $196.3 million in the prior corresponding period.
This boost in profit will be achieved despite overall same store sales declining by 0.8 per cent in the 25 weeks to January 21, dragged lower by a 6.4 per cent fall in New Zealand.
Chief executive of Kathmandu, Xavier Simonet, says it's important to make sure the Christmas period is a success every year.
"Striking the right balance in the key Christmas trading period between generating sales growth and improving our gross margin has fuelled healthy earnings growth," says Simonet.
"We have also continued to strengthen our balance sheet position during the first half."
The retailer will release the full result for the half year on Tuesday March 20, 2018.
This good news from the retailer follows a strong FY17 report from the company.
In September 2017 Kathmandu announced it reported a rise in net profit after tax of 13.5 per cent to $34.7 million for FY17.
Shares in Kathmandu are up 0.45 per cent to $2.22 per share at 11.40am AEDT.
Business News Australia
Author: David Simmons