Kathmandu shares got another boost this morning after the adventure wear retailer upgraded its profit forecast after a good Christmas and better-than-expected sales in the first half.
The company said total group sales are expected to be up 13.1 per cent to $NZ165.8 million for the half year ending January 31. Same store sales growth for the 26 weeks to January 27 was 6.1 per cent on a constant currency basis.
It now expects net profit in the six months to December 31 to be between $NZ9.5 million and $NZ10.5 million ($A7.69 million and $A8.50 million), an increase of up to 75 per cent on its $NZ6 million net profit in the previous corresponding period.
The company expects up to 70 per cent of its full-year earnings to be made in the second half of the financial year and, therefore, remains cautious about its full-year performance.
"Given this trading pattern and the volatile nature of the retail trading environment, we remain cautious about our full-year result," Mr Halkett said.
In accordance with its usual practice, Kathmandu did not provide earnings guidance for the full financial year.
Kathmandu’s half year results will be released Tuesday March 26.
In recent trade Kathmandu shares were up 9½ cents - 5.4 per cent - at $1.865.
The stock has jumped more than 40 per cent since November when Kathmandu told shareholders at its annual meeting that year-to-date sales were up 19.5 per cent.
Same-store sales - excluding stores opened during the year - grew by 14.3 per cent during the period, compared with 7.6 per cent in the same period last year.
The company said at the time that a better gauge of its performance for the year will be provided by the Christmas trading period, as well as the second half, which has historically accounted for 58 per cent of sales and almost all of its earnings growth.
The company reaffirmed its commitment to opening new stores, with 15 targeted across Australia and New Zealand for 2012-13.