24 Sep 2010

Cut in Kathmandu profit

12:31 pm on 24 September 2010

The cost of listing on Australasian stock markets has cut profit for Kathmandu to $9.4 million in the year to July, a decrease of 37% on the previous year.

Excluding the $15.8 million spent on last November's share float, Kathmandu's profit stood at $25.2 million.

That's less than the $30 million that was forecast in March, due to weaker consumer spending in New Zealand and higher promotional costs in the second half of the year.

Revenue rose 14% to $246 million as the clothing and outdoor retailer opened more stores than intended, mainly in Australia.

Sales at stores open at least a year rose strongly in the first half of the year, but the economic slowdown, particularly in New Zealand, led to same store sales contracting in the second half.

Kathmandu declared a dividend of 7 cents per share.

Looking ahead, the retailer remains confident about growth despite ebbing consumer confidence and rising costs.

It plans to add another 15 stores this year to the 97 it already has in New Zealand, Australia and Britain.

Kathmandu shares rose 1 cent to $1.78, compared with an issue price of $2.13.