The difficult trading period appears to be getting the best of most retailers with Kathmandu reporting a 10.7 per cent fall in its net profit after tax to NZ$34.9 million.
Similarly, the company’s earnings before interest and tax was down 10.9 to NZ$57 million.
However, sales were up $41 million – a 13.4 per cent increase from NZ$347.1 million of last year.
The retailer’s New Zealand stores outperformed Australia in same store sales growth with a 2.7 per cent different. As for the first half of the year, Kathmandu’s relative sales performance in Australia has generally been weaker in those states not directly benefiting from activity in the resource sector.
Kathmandu CEO Peter Halkett said these are solid results given the difficult economic environment and confirmed Kathmandu’s overall key growth strategies remain consistent.
“We will improve company performance by continuing to invest in our store network through opening new stores and relocating or refurbishing existing stores,” he said.
“Maximising the return on the investment made in inventory will be a key focus, and operating costs will continue to be effectively managed.
“Kathmandu’s investment in systems to grow our online sales, both within Australaisa and globally, will continue given the opportunity presented by this channel.”
The company reported that it expects performance top improve in the 2013 financial year.