Despite retailers in general struggling to maintain margins, Kathmandu boosted store numbers from 97 a year ago to 111, of which 66 are in Australia (11 new), 39 in New Zealand (three new) and six in the United Kingdom.
Sales were up 24.5% at $306.1 million, earnings before interest and tax climbed 32% to $64 million, while after-tax profit soared 55%, or $13.9 million, to $39.1 million.
The total dividend for the year is 10c per share. After the announcement yesterday, Kathmandu's shares were up 1.8% at $2.23.
Kathmandu chief executive Peter Halkett said increasing inventories was key in attaining double-digit growth in same-store sales in New Zealand and Australia, while the 14 new stores performed "very well" - all aided by colder weather, especially in the second-half trading period.
"The increased investment in stock ensured that we were able to take full advantage of the growth in demand that we experienced," Mr Halkett said in a statement.
Total inventories increased by $16.6 million, which in July last year stood at $37.4 million, rising this year to $54 million.
Craigs Investment Partners broker Peter McIntyre said Kathmandu had identified operating costs, especially rent and payroll, were outpacing retail growth, and had to be carefully monitored.
Operations in the United Kingdom, where Kathmandu has only a small number of shops and has established no new ones during the year, remained "problematic", but they were increasingly having fewer negative effects on the wider, expanding group, Mr McIntyre said.
Kathmandu appeared set to follow the same model and growth strategies for the year ahead.
Mr Halkett said a target of 15 new stores had been set for this financial year. Also, existing stores would be either refurbished or relocated, and there would be further growth in Kathmandu's product range and enhancements to its online business.
"The current retail environment and cost pressures both domestically and internationally create a volatile and unpredictable environment.
"However, given our market position and brand strength, we remain well placed for further growth [during] full-year 2012," Mr Halkett said.
Operating costs rose from $100.9 million to $129.2 million, while operating cash flow for the year increased from $32.6 million a year earlier to $39.8 million. Capital expenditure declined from $13.9 million to $11.9 million, while net debt, including cash, declined from $49.3 million to $42.9 million.
Mr Halkett said the record strength of the New Zealand dollar against the United States and Australian currencies helped drive down some import costs. It also encouraged people to visit New Zealand, who in turn bought Kathmandu products during their stay.
