Chief executive Peter Halkett said Kathmandu achieved same-store sales growth of 12.1% for the half-year to January, improved gross profit margin from 61.3% to 64.7% and opened three new Australian stores.
"Given the retail environment over the period, we clearly consider this is a very solid performance," said Mr Halkett said in a statement yesterday.
Shares in Kathmandu, which will pay a 3c interim dividend, rose almost 3%, or 5c, to $1.99 after the announcement.
Forsyth Barr broker Suzanne Kinnaird said the result was good, especially considering the retail environment.
"Kathmandu were just above the top-end of guidance they gave in January, so market has reacted favourably.
Mr Halkett said Kathmandu's focus is on expanding store numbers from the present 100 to 112 by July this year, plus inventory investment and sticking with its "aggressive marketing programme".
However, he cautioned second-half improvements were reliant on stock availability, particularly from China, unseasonal weather and noted market confidence can be impacted by events such as Australia's flooding and the earthquakes in Christchurch and Japan.
He said capital expenditure would be up on last year's, at $13.6 million, but will be affected by the number of new stores opened this financial year.
Kathmandu
• Sales up 19.2% to $127.1 million.
• Earnings before interest and tax up 28.4% to $19.9 million.
• After tax profit up $6.1 million to $10.5 million.
• 100 stores: New Zealand 36, Australia 58, UK 6.
