The outdoor clothing and equipment retailer Kathmandu plans to convert its underperforming British stores to online sales over time, and replicate the model in other offshore markets.
The listed company has quadrupled its profit, making $39.1 million in the year to the end of July, compared with the previous year.
Sales at stores open at least a year rose by 16%, with New Zealand outperforming Australia, but the United Kingdom dragged behind with a 7% decline.
Despite that, says chief executive Peter Halkett, the company will keep its six UK stores open for business, though it definitely won't open any more. If British customers start buying Kathmandu stock online, he says, it would be a good model for other markets, particularly the United States.
"If we could get that right, that would open up opportunities in other places," Mr Halkett says.
Plans to open 15 more stores this year
He says Kathmandu's online sales have doubled in the past year, and he expects the same result this financial year.
The company has 111 stores in the UK, New Zealand and Australia and Mr Halkett says it will open 15 more this year, mostly in Australia, despite the uncertain retail environment.
"We still believe our growth strategies and the things we're doing are working for us, so that's why we remain optimistic even if the market does deteriorate a little bit. If it deteriorates a lot, that's going to be tough for everybody, isn't it."
Shares in the company rose 1c to close at $2.20 on Wednesday.
