26 Mar 2013

Kathmandu reports hefty net profit lift

10:57 am on 26 March 2013

The retailer Kathmandu reported a 72.7% rise in first half net profit to $10.33 million.

The result was above company estimates of net profit between $9.5 million and $10 million, issued in February.

Revenue rose 13.1% to $165.9 million.

Kathmandu chief executive Peter Halkett said the company opened nine new stores in the half and grew its online sales by 50%, AAP reports.

"Along with the continued growth in online sales, the new stores we opened in a variety of locations and formats have generally met or exceeded our sales expectations," Mr Halkett said in a statement on Tuesday.

While the company did not offer specific earnings guidance, Mr Halkett said the strength of its Australian operations and effective cost management "should deliver a strong profit outcome for 2013".

Mr Halkett said sales through February and March had been hit by hot and dry weather in New Zealand and Australia.

"However, as we have only just commenced our Easter sale, which is the second of our three largest promotional events each year, it is still too early to assess with reasonably certainty the overall result for the full year," he said.

The company is listed in both Australia and New Zealand and declared a fully franked interim dividend of 3 cents per share.