Kathmandu eyes web shoppers in US, Japan and Canada

Peter Halkett says the internet is an opportunity for Kathmandu to extend its customer base beyond countries where it has actual stores, like this new one in Christchurch. Photo / Supplied

Kathmandu is expanding its online presence to customers in countries that may include the United States, Japan and Canada.

Chief executive Peter Halkett, speaking at the annual shareholders' meeting in Auckland yesterday, said the outdoor apparel retailer saw growth in internet shopping as an opportunity rather than a threat.

The fact that Kathmandu's branded products could only be bought through its own stores gave the company an advantage over other retailers, he said.

At present Kathmandu has websites only for customers in New Zealand, Australia and Britain - the three countries where it has bricks-and-mortar retail stores.

Halkett said other markets, such as Canada, the United States and Japan, were the "top prospects" for a global website.

"That project is under way now and probably by the middle of next year we'll be launching that platform."

Kathmandu released a trading update yesterday, showing sales during the 15 weeks to November 13 rose 16 per cent on the same period last year to $56 million.

"Sales momentum has been steady and we have maintained gross margins," Halkett said. "It must be noted, however, [that] first-half-year profit is highly dependent on the Christmas and January trading period."

Acting chairwoman Sandra McPhee said Kathmandu would approximately double its capital expenditure during the firm's current financial year.

"This will facilitate not only our new store rollout [15 new stores are expected to open], but also an extensive store refurbishment programme, the rollout of the new brand identity and key infrastructure improvements including a new distribution centre in New Zealand and new Australia support office in Melbourne," McPhee said.

Shares in Kathmandu closed down 2c at $2.55 yesterday.