17 Mar 2011

Strong sales help Kathmandu double profit

1:06 pm on 17 March 2011

Kathmandu's half year profit has more than doubled on the back of strong sales in Australia and over the Christmas period.

The outdoor clothing and equipment firm made $10.5 million in the six months to the end of January, up 138% on the same period last year.

Sales at stores open at least a year rose 12% to $127 million.

The retailer performed well in Australia, with sales rising almost 12.5%.

Sales rose 6.5% in New Zealand but the company continued to struggle in the United Kingdom, where sales were flat.

Kathmandu chief executive Peter Halkett says sales were particularly strong in December and January.

He says the gross margin is at the top end of the range it has been targetting.

Investment in stock and improving stock availability to satisfy demand has also played a part.