Outdoor retailer Kathmandu is facing pressure to perform in the coming financial year after a poor 2015 full-year result.
Despite this, chief executive Xavier Simonet is optimistic.
The Christchurch-based company announced it was closing its stores in the UK, but would continue to sell online there, after posting a $20.4 million net profit for the year ended July 31, down 51.6 per cent from the previous year. Aggressive discounting to move stock as well as decreased demand in Australia was blamed for the lower profit.
"Obviously the result is disappointing but there is really no new news versus what we announced in the target company statement months ago," Simonet said. "[Kathmandu] is a great brand with a great and passionate team, and that's one of the main reasons why I joined the company - it's a fantastic retail business," he said.
Sales for the year rose from $392.9 million to $409.4 million and Simonet reaffirmed the company's commitment to deliver on FY16 numbers, with sales expected to reach $454.6 million and earnings before interest and tax to rise to $48.2 million from $33.2 million this year.