Kathmandu has lifted first-half profit almost 23 per cent following a boost in sales after a successful Christmas trading period and has agreed to buy US-based Oboz Footwear.
The dual-listed retail chain reported a $NZ12.3 million ($A11.5 million) net profit in the six months to January 31, and a 4.3 per cent lift in revenue to $NZ204.8 million.
Chief executive Xavier Simonet said sales momentum improved through the end of the Christmas trading period and has continued into February and March.
Sales grew by 3.7 per cent in Australia, Kathmandu’s largest market, while New Zealand sales fell 6.4 per cent impacted by lower levels of clearance stock.
But the outdoor clothing and equipment retailer said group sales rose almost eight per cent in the first six weeks ending March 11 from a year ago.
“Striking the right balance between generating sales growth and improving our gross margin has fuelled healthy earnings growth in the first half,” Mr Simonet said on Tuesday.
“Our financial position continued to strengthen during the first half year and we ended the period with healthy inventory and record low half year net debt.”
Kathmandu on Tuesday also announced it has inked a deal to acquire Oboz for $US60 million ($A77.7 million), and an earn-out of up to $US15 million.
Oboz, which designs, sources and sells footwear for backpacking and hiking, distributes its products directly to North American outdoor chains, limited online sellers and show and sporting goods stores.
Mr Simonet said the purchase would help the company accelerate growth internationally.
SALES LIFT KATHMANDU’S FRST HALF PROFIT:
* Net profit up 22.7pct to $NZ12.3m
* Revenue up 4.3pct to $NZ204.8m
* Fully franked interim dividend of $NZ4.0 cents, unchanged