A boost to Kathmandu shop numbers and refurbishments in Australia underpinned a healthy 13% sales gain to $165.9 million and a 24% rise in earnings before interest and tax at $15.8 million.
After-tax profit for the half-year to January was up 72% on a year ago, up from $6 million to $10.3 million. Kathmandu chief executive Peter Halkett said same store sales in Australia outperformed New Zealand, by respectively 9.6% and 1.3%, for the period. Australian sales leapt 22% to $103.5 million.
''Strong sales growth over the period was underpinned by successful new store openings and a solid increase in same store sales, despite a challenging market,'' he said in a market statement yesterday.
Kathmandu declared a 3c interim dividend. Its shares, having risen about 25% during the past year, yesterday rose 5c to $2.50 after the announcement .
Craigs Investment Partners broker Peter McIntyre said investors should be pleased with the ''good result'', and while the New Zealand operations had ''struggled'', the same growth and roll-out of new outlets was ''working well for Kathmandu''.
Forsyth Barr broker Suzanne Kinnaird said she liked Kathmandu's continued strategic direction and the focus of the company.
''Its store rollout programme remains on track and the company has increased its store footprint target to 170 stores across Australasia, previously being 150 stores,'' she said.
However, Ms Kinnaird said the key risk for second-half trading this year was unseasonal weather conditions, being warmer than usual.
Mr Halkett cautioned that historically the overall profit for the full year depended mainly on second-half performance, especially the winter sale, and he gave no detailed financial guidance for the full-year result, other than expecting to deliver a ''strong profit outcome''.
Aside from the success of sales, which could be negatively affected by seasonal weather, the general economic environment remained volatile, with recent low levels of consumer confidence, Mr Halkett said.
Mr McIntyre noted the outdoor retail sector had been showing better signs than most other retailers, highlighting Rebel Sports' positive contribution to the Briscoes group result.
There were nine new store openings in Australia - three each in Queensland and New South Wales, and one each in Victoria, Western Australia and the the Northern Territory. One each in Melbourne and Perth were relocated, with a further two in Melbourne refurbished, Mr Halkett said.
Kathmandu planned to open six more outlets before the end of the financial year, in Melbourne, Sydney and Hobart, Auckland, Pukekohe and London. Two UK stores, in Brighton and London, will close.
Mr Halkett said the gross profit margins for the half-year were consistent with a year ago and, at 62%-64%, remained in Kathmandu's target range.
The combined management of working capital and improved operating cashflow meant net debt had decreased 5.4% on a year ago, with the debt to equity ratio down slightly at 23%.
Total stock inventory rose 10%, or $7.7 million, in line with store growth, but on a dollar-per-store basis declined 1.7%.
Kathmandu
Number of outlets compared with a year ago
• Total rose from 114 to 129
• Australia: up from 68 to 81
• New Zealand: up from 40 to 42
• United Kingdom: unchanged on 6
