At least one retailer is having a good time at the moment.
Outdoor clothing and equipment retailer Kathmandu Holdings, which was struggling in the middle of last year, reported 31.6% jump in headline third quarter sales yesterday and an equally impressive 23.2% rise in same store sales for the 13 week period.
Kathmandu chief executive Peter Halkett said in the update that the company’s Easter sale promotion was helped by favourable weather, particularly in Australia, and by the late April timing of the Easter weekend this year.
He said that while the quarter to May 1 had clearly been particularly good, it was in comparison with a relatively poor performance for the corresponding period in 2010.
And he says Kathmandu is on track to deliver strong year-on-year sales and profit growth, with the third quarter performance building on a 19.2% sales increase in the first half year.
Economic conditions and weather patterns remained key risks to the company’s latest quarter trading.
Historically, trading in the final three months of the financial year generated about 30% of earnings for the full year.
The company said that measured on a constant currency exchange rate, the rise in total sales for the third period was 29%, while same store sales were up 20.7%.
Same store sales for the three months had been up by more than 20% per cent in both Australia and this country, but fell in Britain.
For the year to date from August 1, total sales were up 23.1% or 20.7% measured on a constant currency basis.
Year to date same store sales were up 15.5%, or 13.3% on constant currency.
Kathmandu shares were up 10c, or 5.5%, at $1.93, closing at their 52 week high, which was a rare event in yesterday’s weak market.
Ruralco also had good news for the market yesterday.
It’s looking at a sharp improvement in earnings for 2011, thanks to better conditions in rural and regional areas and higher prices for commodities.
The company told the market it expects Group net profit after tax (NPAT) for the half year ended 31 March 2011 "to be in the range of 25% to 35% higher than the previous corresponding half year’s reported result of $7.8 million.
"Underlying NPAT, before non-recurring items, is expected to be 20% to 30% higher than last year’s result of $8.0 million."
Managing Director Mr John Maher said in the statement that, "The Company had faced challenges arising from extreme weather events in recent months but their effect is not seen as material to Ruralco’s FY11 result.
“Profit has increased largely due to growth in sales of rural supplies as well as strong commodity prices in livestock and wool operations.
"However, further provision for doubtful debts in some business units has hampered the overall result.
"The continued expansion of Ruralco’s footprint over the past four and a half years has the Group well placed to capitalise on promising seasonal conditions and continued strong soft commodity prices.
"While the performance of some businesses, particularly farm machinery, stock feed and residential property are below expectations, most cropping areas in the eastern states have an excellent soil moisture profile ideal for planting conditions.”
Ruralco will report its half year results on Tuesday, May 24.
Shares in the company were steady at $3.35 yesterday on low volume for most of the day before small late orders boosted the shares 6c, or 1.8%, to $3.41.
Washington H Soul Pattinson owns around 23% of the stock and another large shareholders has 26%.
