Kathmandu annual profit climbs 64% 21 Sep 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Wednesday 21 September 2016 10:22 AM
Kathmandu annual profit climbs 64%; better product management fattens margins
By Paul McBeth
Sept. 21 (BusinessDesk) - Kathmandu Holdings, which fended off a takeover proposal from its biggest shareholder Briscoe Group, lifted annual profit 64 percent and will pay a bigger dividend after more rigorous inventory management helped fatten margins.
Net profit rose to $33.5 million, 16.6 cents per share, in the 12 months ended July 31, from $20.4 million, or 10.1 cents, a year earlier, the Christchurch-based outdoor equipment chain said in a statement. Gross margin widened to 62.6 percent from 61.5 percent, and sales rose 4 percent to $425.6 million.
"Sales growth was achieved at higher gross margins as a result of product newness and careful management of promotional activity," chief executive Xavier Simonet said. "Cost efficiency and improved working capital management have also contributed to a successful FY2016."
Kathmandu primed shareholders for an upbeat result last month saying earnings would be between $33 million and $34 million as better-run promotions helped boost profitability. The retailer had already upgraded guidance in June.
The board declared a final dividend of 8 cents per share, payable on Nov. 25 with a Nov. 14 record date, taking the total payout to 11 cents. That's up from 8 cents in 2015, though still less than the 12 cents paid in 2014 and 2013.
The shares rose 2 percent to $2.02, having gained 27 percent so far this year.
Simonet said the company is working to reduce the currency impact on gross margins for the 2017 year, through "sourcing negotiations, product newness and continual refinement of our customer-centric promotional calendar."
Kathmandu didn't give guidance for the 2017 year, saying it was too early to comment due to changes in the timing of promotions, although Simonet said the retailer is investigating other foreign markets, using its Australian business as a foundation.
Australia generated most of Kathmandu's sales across 114 stores, up 5.2 percent to $278 million with earnings before interest, tax, depreciation and amortisation jumping 51 percent to $32.9 million. The New Zealand business spanning 47 stores lifted revenue 1.9 percent to $141.7 million, while earnings climbed 21 percent to $35 million. The UK business posted a 3.1 percent fall in sales to $5.5 million while narrowing its loss to $541,000 with the closure of three stores, leaving just one at the end of the year.
Online sales rose about 15 percent and now account for about 6.9 percent of total sales, it said.
Kathmandu scaled back inventory to $95.4 million from $113.3 million a year earlier, which it said was due to the introduction of its forecasting and planning system in 2014, which allowed more accurate buying.
(BusinessDesk)
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more