For its full year to July, Kathmandu's after-tax profit was up 27%, or $9.3 million, from $34.9 million to $44.2 million; a result which included a $3.1 million taxation benefit from a Australian intercompany loan revaluation.
Its shares were up more than 12% to a record high at $3.22 following the announcement. Kathmandu has been the second-top performer for the stock exchange during the year, with its shares up about 75%. It will pay a 12c dividend for the year.
Revenue was up 10.6%, from $347.1 million to $384 million for the year, while earnings before interest and tax rose 11.2%, from $57 million to $63.4 million.
Craigs Investment Partners broker Peter McIntyre said the profit, excluding the tax benefit, was 3% below expectations, while the ebit margin of 16.5% was slightly stronger than Craigs' expectations.
''However, we are still seeing [profit] margins under pressure from a year ago. There were more sales, but there was more stock discounting,'' he said.
Sales growth in Australia made a 19.5% gain and in New Zealand 8.6% gain, while overall margins were down 0.2%, but in a target range of 62% -64%, the company said.
Forsyth Barr broker Suzanne Kinnaird said after-tax profit was in line with expectations and the result overall helped by a ''stellar'' first half result, but also raised concerns over increasing discounting.
''A weaker-than-expected divisional result from Australia offset a stronger-than-expected result from New Zealand,'' she said.
She said the lower profit margins from Australia suggested Kathmandu might have been impacted by increased discounting there.
''[That] is in line with recent commentary from both Hallenstein Glasson and Pumpkin Patch,'' she said.
Chief executive Peter Halkett said it expected ''another solid performance'' during full-year 2014, given its investment programme during the past two years, but that was dependent on no further deterioration in economic conditions.
''Operating expenses remain a key management priority,'' the company said.
There are 15 new stores scheduled to open during the year. Store numbers had risen from 90 at the start of 2010 to 136 at the end of 2013.
