Kathmandu shares hit their highest level in a month after the outdoor adventure clothing specialist lifted it’s full year earnings guidance saying new products and better management had boosted margins. The company said estimated earnings for 2015 / 2016 would be between $NZ 49 million and $NZ 53 million up from $NZ 33.2 million in the previous year. Estimated net profit for the year is now estimated at $NZ 35 million.
Chief executive Xavier Simonet said a big part of the years sales figures depended on July trading, the final month for the companies financial year, but better margins and cost savings had improved the expected outcome. Despite the winter season starting late this year, new products and careful management of promotional activity have resulted in a better than expected gross margin.
The expected result is a substantial turn around for the company which in 2014 – 2015 recorded a net profit of $NZ 20.4 million down 52 percent on the previous year. Kathmandu shares soared 21.5 cents to $1.46 their highest level since June 1. 2016. A further trading update will be released by the Kathmandu Company in early August 2016.