Kathmandu Holdings Limited
(ASX:KMD) has flagged an increase in its first half net profit following strong first quarter sales growth and a good performance over the Christmas and new year trading period.
The travel and adventure retailer expects to post a first half net profit of between $7.6 and $8.4 million, up from last year’s $4.8 million interim profit.
CEO Peter Halkett says sales in Australia have continued to grow at a faster rate than in New Zealand, reflecting the strengthening of the Kathmandu brand and market penetration in Australia.
Mr Halkett said the company expects approximately 60 per cent of sales and 70 per cent or more of earnings to be made in the second half as its new store roll out continues.
Kathmandu has opened 9 new stores in the first half of the current financial year, and plans to open another 15 in the second half.
Kathmandu generated a net profit of $26.8 million in the 2012 financial year.
