Dual-listed Kathmandu Holdings Limited (ASX:KMD, NZE:KMD) has warned its full year earnings will be impacted by warm weather hurting the company’s winter sales.
The New Zealand-based adventure sports retailer says EBIT for the 11 months to the end of June will fall between 10 and 15 per cent from the prior period when the company posted earnings of $63.4 million.
CEO Peter Halkett notes the sales shortfall has been particularly significant in the past fortnight which are the first two weeks of Kathmandu’s winter sale promotion.
Mr Halkett says this warmer, drier and generally sunnier weather has not been conducive to sales of the company’s cold weather product groups such as down jackets, fleece and thermals.
The company anticipates any recovery in trading from now until the end of July will not be enough to make up the shortfall in sales to date in June.
Kathmandu Holdings increased its net profit to $10.5 million in the first half of the 2014 financial year.
