Kathmandu updates full year earnings guidance
Outdoor clothing retailer Kathmandu is expecting a full year profit of NZ$32.0 million to NZ$35.0 million ($22.73 million to $24.86 million), up from last year's NZ$20.4 million ($14.49 million).
The positive result comes on the back of boosted margins from new products, better management of promotional activity and cost savings, the Christchurch-based retailer said in a press release.
Kathmandu predicts a full-year EBIT of $49.0 million to $53.0 million, up from last year’s $33.2 million. Year to date same store sales growth for the 47 weeks ending 26 June 2016 currently sit at 2.6 percent on a constant currency basis, said Kathmandu in a press release.
Kathmandu’s Chief Executive Officer Xavier Simonet said: “Despite the winter season starting late this year, product newness and careful management of promotional activity have resulted in a better than expected gross margin. This combined with continued realisation of cost efficiencies has contributed to an improved FY2016 outcome.”
A substantial proportion of the year’s sales and earnings result are still dependent on trading in July, the final month of the financial year, said the retailer.
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