Kathmandu expects Rip Curl boost

Kathmandu said its diversification strategy was already showing benefits. Photo / Supplied

Kathmandu Holdings said same-store sales rose 1.5 per cent in the 26 weeks to January 26, although margins have declined.

A Kathmandu statement also said it would post a 40 per cent earnings boost for the half-year to January 31, thanks to the A$350 million Rip Curl acquisition completed late last year.

Rip Curl is expected to add at least 10 per cent to Kathmandu's per-share earnings.

Kathmandu is the latest to identify a shift in shopping patterns to the heavily discounted events of Black Friday in November and Boxing Day, saying it experienced low foot traffic in between.

"The Christmas trading period has seen a further shift towards Black Friday and Boxing Day events. Low December market foot traffic between these two events, unusually hot weather, and bushfires in Australia, have combined to moderate first half sales," said chief executive Xavier Simonet.

The retailer said online sales were up by 30 per cent versus the same period last year, and its Oboz footwear division's sales were up 10 per cent.

Kathmandu said its diversification strategy was already showing benefits, with Rip Curl's total sales for the first three months under Kathmandu's ownership expected to be more than 2.7 per cent higher than the comparable period last year.

The company said it was actively monitoring any supply chain developments as a result of the coronavirus outbreak in China.

However it said it does not expect a material supply impact from coronavirus in the short term, and consumer demand so far had not changed significantly.

"The group has mitigation plans in place if there is a prolonged disruption to our Chinese suppliers."

This week, Briscoe Group managing director Rod Duke said the retailer had cancelled a buying trip to China as a result of the outbreak.

Kathmandu will release its full result for the half-year on March 30. Shares in the outdoor clothing retailer closed at $3.44 yesterday, having risen by more than 40 per cent over the past 52 weeks.