Kathmandu fortunes continue to rise

Kathmandu chief executive Xavier Simonet. Photo/supplied

Kathmandu Holdings says full-year profit rose as much as 13 per cent after a successful winter sales season and increased revenue from Australia.

Profit was between $37.4 million and $38 million in the 12 months ended July 31, from $33.5m in 2016, the Christchurch-based outdoor equipment chain said in a statement.

Earnings before interest and tax were in a range of $56m to $57m, from $50.9m in the previous year.

In March, the retailer beat its first-half guidance, having bounced back from an earnings slump in 2015 when an inventory build-up forced it into aggressive discounting at low margins to clear stock.

Kathmandu shares have climbed 29 per cent in the past 12 months, outpacing a 6.4 per cent gain for the NZX 50 Index.

"Our financial performance has been strengthened further during FY2017 through operating leverage, reduced inventory and record low debt," said chief executive Xavier Simonet.

"Sales continued to grow in our key Winter promotion which completed four successive quarters of same store sales growth."

Full-year sales rose 4.6 per cent to $445.3m while same-store sales rose 5.5 per cent at constant exchange rates, the company said.

On that basis, Australian sales gained 6.9 per cent and New Zealand sales were up 3.6 per cent.

The shares last traded unchanged at $2.26.

The company plans to release its full results for the year on September 26.