4 Aug 2016

Kathmandu increases forecast profit

11:01 am on 4 August 2016

Kathmandu Holdings has updated its forecast full year net profit, which will be close to the top end of its guidance, after making better-than-expected gross margins.

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Photo: RNZ / Alexander Robertson

The outdoor clothing and sporting goods retailer estimated the full net profit would be in a range of $33 million to $34m for the 12 months ended in July, which was well up on last year's $20.4m.

The company expected its underlying operating profit to be between $50m and $51m, compared with $33.2m the year earlier.

Sales were expected to be up 4 percent to more than $425m.

Kathmandu chief executive Xavier Simonet said the result reflected careful management of its promotions.

"The sales pattern during our winter campaign changed this year with sales happening earlier in the campaign at a higher gross margin," he said.

The company will release its full year result on September 21.

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