Outdoor apparel retailer Kathmandu, which is being hard-hit by a tough retail environment on both sides of the Tasman, is expected to post a drop in profit in its interim result tomorrow.
Goldman Sachs analyst Buffy Gill has forecast the firm's half-year net profit to fall 21 per cent on the prior comparable period to $8.3 million, while earnings before interest and tax are expected to drop 17 per cent to $19.3 million.
Some of the things to look out for in tomorrow's result were weak like-for-like sales, excess inventory, lower gross margins and weaker cash flow, Gill said.
The company, which is listed in Australia and New Zealand, advised the market just before Christmas that festive season trading had not met management's expectations and earnings before interest, tax, depreciation and amortisation (ebitda) were expected to fall below the $23.2 million achieved in the same period a year earlier.
At that time chief executive Peter Halkett said trading had taken a turn for the worse in the last week of November and same-store sales had been negative on the prior year during December.
