Kathmandu is rewarding staff after the outdoor equipment retailer’s full-year profit surged almost a third to $NZ50.5 million ($A46.3 million) thanks to a big jump in Australian sales.
Same store sales in Kathmandu’s Australian stores rose 7.5 per cent, comfortably offsetting a clearance-driven 2.4 per cent decline in New Zealand and lifting total sales 11.7 per cent to a record $NZ497.4 million.
Net profit for the 12 months to July 31 rose 32.8 per cent and the retailer increased its final dividend 2.0 NZ cents to a fully franked 11 NZ cents, helping push its ASX-listed shares up more than 10 per cent at the open.
Kathmandu will also reward all permanent staff not on an incentive scheme with a $NZ1,000 bonus to thank them for helping lift sales.
“This is an acknowledgement of the contribution of all Kathmandu team members to the continued performance and success of our company over the last three years,” chief executive Xavier Simonet said.
“FY18 is a record year in terms of sales, profit, and operating cash flow and we believe it is important to recognise the role our team has played.”
Mr Simonet hailed the firm’s success in appealing to consumers amid tough trading conditions in the retail sector.
“Our customers have reacted positively to innovative products and engaging brand content,” Mr Simonet said.
Total sales excluding newly acquired premium US-based footwear brand Oboz rose 6.1 per cent, and 4.4 per cent on a same-store basis.
Operating expenses decreased a percentage of sales despite $NZ2 million in costs for the Oboz acquisition and another $NZ2 for the additional staff bonuses.
“In Kathmandu and Oboz, we have two great brands with significant growth potential in North America and Europe,” Mr Simonet said.
Shares in Kathmandu jumped as much as 11.1 per cent at the open and, at 1047 AEST, were still up 8.7 per cent at $3.11.
KATHMANDU SCALES THE HEIGHTS
* Net profit up 32.8pct to $NZ50.5m
* Sales up 11.7pct to $NZ497.4m
* Final dividend up 2.0 NZ cents to 11.0 NZ cents, fully franked