For its full year to July, Kathmandu had sales increase 4% to $425.6million, gross profit rose 5.8% to $266.4million, earnings before interest and tax rose 53.3% to $50.9million and after-tax profit was up 64.2% to $33.5million.
Poor performances in recent years prompted its largest shareholder, Briscoes, to last year attempt a hostile $362million takeover bid, which foundered with only a small cash component on offer.
Kathmandu had been dogged in previous years by mild winters, high stock levels, lacklustre sales and the slashing of profit margins to move old stock.
Kathmandu's chief executive Xavier Simonet said the full-year results had exceeded expectations.
Contributors to the successful full year were sales growth, which was achieved with higher gross margins, product newness and careful management of promotional activity, while there were gains from cost-efficiency and improved working capital management.
On the 2017 outlook, Mr Simonet said Kathmandu had worked hard to minimise the impact of currency on gross margins, through sourcing negotiations, product newness, and refinement of its customer-centric promotional calendar.
Online sales had grown strongly in all countries, with overall growth of about 15%, and online sales making up 6.9% of total sales.
Gross margin improved 1.1% points from 61.5% the previous year to 62.6%.
''In the second half-year, careful management of promotional activity also helped to offset higher input costs as a result of foreign currency,'' Mr Simonet said.
He said Kathmandu, with 161 outlets, wanted to further expand into international markets this year with the profitable Australasian business providing the foundation.
Kathmandu's final dividend rose from 8c a year ago to 11c. Its shares were up more than 3.5% to $2.05 yesterday, rising than 25% so far this year.
Forsyth Barr broker Suzanne Kinnaird said the $33.5million profit was ''modestly ahead'' of expectations, but otherwise materially ahead of the prior year following a suite of strategic changes after management changes.
''Both of its core markets, New Zealand and Australia, delivered improved margin and sales results, with Australia the top performer,'' Mrs Kinnaird said.
The ''key standout'' was the reduction in debt levels to $36.8million from $69.3million, she said.
That was underpinned by a strong lift in operating cash flow following the profit increase and improved inventory management, with stock per store down 14%.
