22 Mar 2016

Kathmandu back in the black

1:29 pm on 22 March 2016

Outdoor clothing retailer Kathmandu is back in the black, and has reported a net profit of $9.4 million in the six months ended January.

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Photo: RNZ / Alexander Robertson

It made a loss of $1.8m in the previous period.

Sales also jumped 9.3 percent, or $16.6m, to hit $196m.

It was a big turn-around for the listed company, which last year beat-off a takeover bid by listed retailer Briscoe Group, which holds about 20 percent of Kathmandu.

At the time, Briscoe Group said it had no confidence Kathmandu's strategy to boost sales and turn around the business would work.

Kathmandu chief executive Xavier Simonet said the results were in line with expectations.

"Operating margin improvement was achieved as a result of increased full price sell-through - combined with implementing planned cost efficiencies," he said.

Kathmandu said same-store sales growth was recorded in all markets - Australia, New Zealand and Britain.

It opened four new stores during the period, three in Australia and one in New Zealand.

The firm will pay a dividend of 3 cents per share.

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