Kathmandu shares jump on guidance

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 14 years ago

Kathmandu shares jump on guidance

Outdoor gear retailer Kathmandu Holdings has reported a net loss of $NZ11.3 million ($8.7 million) in its inaugural half year, including the cost of its initial public offering, and confirmed guidance for full year earnings.

The net loss for the six months to January 31 widened from the $NZ2.4 million reported a year earlier, Christchurch-based Kathmandu said in a statement this morning.

Kathmandu shares jumped 11.5 per cent, or 6.6 per cent, to $1.855 in early trade.

The company reported a net profit excluding IPO costs of $NZ4.4 million, while sales jumped 27.5 per cent to $NZ106.6 million.

Kathmandu said it was confident that it would meet its full year prospectus forecast of profit after tax $NZ30.9 million, after allowing for the full year pro forma forecast adjustments contained in the prospectus.

Kathmandu said it had to deliver a successful second half in order to deliver the full year forecast. This would be influenced by weather conditions and the retail environment.

Kathmandu said it would not pay a first half dividend, as set out in the prospectus. The company plans to pay a full-year dividend of 6.7 NZ cents per share, if it meets profit forecasts.

"It is very satisfying to deliver a good first result announcement," Kathmandu chief executive Peter Halkett said in the statement.

The result was the result of an improved retail environment and a successful store rollout program, Mr Halkett said.

The company's Australian sales, which make up more than half the total, grew 24.7 per cent to $NZ58.7 million. Same store sales growth was 9.9 per cent.

Mr Halkett said the second half, which includes the winter months, made up Kathmandu's larger proportion of sales.

AAP

Most Viewed in Business

Loading