By Aimee Chanthadavong
In the midst of challenging conditions, Kathmandu continues to trade strongly, reporting a solid full year result for 2013.
The outdoor retailer announced its net profit after tax increased from NZ$34.9 million to NZ$44.2 million ($38.9 million), meanwhile earnings for the same period increased $55.7 million.
Kathmandu CEO Peter Halkett said the company’s focus on its online opportunities, where an online platform was launched in early FY2013, helped support this strong growth. In fact online sales experience a 55 per cent growth, contributing to over 4 per cent of total sales.
“We expect the growth opportunities available to us online to be enhanced further as we offer an improved customer experience by utilising our CRM capabilities,” he said.
Halkett further commented saying that “sales growth in the UK and other markets globally will be focused on driving brand awareness in the online channel, supported by launching the Kathmandu brand in web based marketplace such as Amazon, where Kathmandu UK has just launched a selected product range.”
The company reported both Australia and New Zealand performed strongly, delivering positive comparable sales growth on the previous corresponding period. Sales in Australia was NZ$241.1 million ($211.9 million) and sales in New Zealand was NZ$137 million ($120.4 million).
“We will continue to invest in our store network through opening new stores and relocating or refurbishing existing stores in Australia and New Zealand,” Halkett said.
“Maximising the return on the investment made in inventory and store space remains a key focus while continuing to effectively manage operating costs.”
He concluded saying that “providing there is no deterioration in economic conditions, Kathmandu expects another solid performance in FY2014.”