Kathmandu Holdings Limited (ASX:KMD, NZX:KMD) has reported first half results are lower than expected and declined to provide full year guidance.
Group sales for the first six months of the 2015 financial year were $178.2 million, an increase of 6.9 per cent on the previous year.
However, the sales were well below expectations, expected to translate to a loss of $1-$2 million for the half compared to a profit of $11.4 million last year.
Trading during the key periods of Christmas and January were well below expectations due to lower demand and extended periods of warm and dry weather. The company says it has comprehensively planned for upcoming campaigns in the traditionally stronger second half sales which are critical to the clothing retailer’s performance.
Acting CEO Mark Todd says it’s too early to predict an outcome from that trading at this time.
Kathmandu reported a net profit of $38.5 million for 2014 financial year.
