On the other end of the spectrum away from David Jones and Myer is Kathmandu who has reported a 32 per cent increase in earnings before interest and tax (EBIT) to $64 million.

It also saw net profit after tax (NPAT) increase from NZ$25.2 million last year to NZ$39.1 million for the year ended 31 July 201 and sales up 24.5 per cent to $306.1 million.

CEO Peter Halkett said the strong trading performance in Australia and New Zealand as a result of key promotional activity helped deliver volume growth in its 111 stores, which was evident in the over 30 per cent increase in its Summit Club membership numbers.

“Our 14 new stores opened during the year have all performed very well and we see continued growth opportunities for Kathmandu as we expand our retail footprint and introduce new products and an updated brand identity to the market over the next year,” he said.

“As we commented in the trading update last month, we made a substantial investment in inventory in FY11, which was a key factor in Kathmandu’s sales growth throughout the year. We were able to meet demand throughout our three key promotional periods, whereas in the previous year we were challenged by limited stock availability, particularly during our Winter sale.

“We also benefited from colder weather patterns through the second half year, especially in Australia for our Easter sale.”

The company also delivered and saw benefits from its brand refresh project, which including the refurbishment of its Kathmandu retail network.

“We are very positive about the benefits to come from the new Kathmandu brand identity, and in conjunction with the re-branding of our stores we are committed to a substantial upgrade programme. This involves also re-locating a number of our stores to larger and higher profile sites” Halkett said.

Looking forward, the company said it will continue the refurbishment and relocation of existing stores, further enhance its online business and grow its product range.

 “So whilst it is clear that consumers have generally been reducing debt and are very cost conscious, we believe those who enjoy outdoor activity and travel have continued to spend money on these pursuits, and have seen the past year as an opportunity to get good value from that spend,” Halkett said.