Kathmandu expects there’ll be an increase in earnings for the first half of the 2013 financial year based on strong sales growth in the first quarter.

Total group sales for the half year will be approximately $165.8 million, compared to $146.7 million in the prior comparative period, an increase of 13.1 per cent.

Given this sales performance, Kathmandu estimates first half year financial year 2013 earnings performance will be:

  • EBITDA $20.5 to $21.5 million (last year $17 million)
  • EBIT $15.5 to $16.5 million (last year $12.7 million)
  • NPAT $9.5 to $10.5 million (last  year $6 million)

Kathmandu CEO Peter Halkett said the company’s trading performance during the Christmas and January period had been generally in line with management expectations.

“Our sales in Australia have continued to grow at a faster rate than New Zealand, which reflects the continuing strengthening of Kathmandu brand and market penetration in Australia,” he said.

Halkett reiterated the company’s overall profit result for the full year remains primarily dependent on second half year trading.

“We continue to expect approximately 60 per cent of sales and 70 per cent or more of earnings to be made in the second half of the financial year, and as our store rollout continues the dollar amount of our sales and earnings that is dependent upon our second half performance will increase,” he said.

But Halkett also said given the volatile nature of the retail trading environment they will remain cautious about their full year result. There a full year earnings guidance was not provided.