In any slump or a boom there are always one or two companies that go against the grain.
Yesterday outdoor adventure wear retailer Kathmandu Holdings again confirmed that it was doing much better than the rest of the sector with another solid trading update.
In its third quarter trading update, delivered in May, the company revealed double digit growth in both topline and same store (comparable store) sales. With strong sales growth in both Australia and New Zealand, but a fall in the UK.
Yesterday it reported a 24.5% increase in sales for the year to July 31 (a bit better than the 23.1% growth in the nine months to the end of April).
The company’s shares jumped more than 6% to end the day at $1.86, up 11c.
In a trading update, Kathmandu chairman James Strong said the company had experienced a substantial improvement in its year-on-year results.
"We anticipate the Kathmandu result will be against the general trend for the retail sector this reporting season," Mr Strong said.
"It is clear that market conditions throughout this year have been particularly difficult for retailers dependent on discretionary consumer spending, particularly in the apparel category," he said.
Sales for the group totalled $NZ306 million ($A245.75 million), up 24.5% on the previous corresponding period.
On a constant currency basis, sales were up 21.5% and same store sales were up 15.7% (slightly better than the 15.5% for the first nine months of the year).
Kathmandu said Australia was the strongest region with sales of $A143.4 million, up 26.3%. Sales in the UK fell 6.7% to 3.9 million pounds.
Sales in the New Zealand market overcame the impact of the two Christchurch quakes to be up $NZ17 million at $NZ 111.2 million, a rise of 18%.
Mr Strong said EBIT for the company was expected to be between $NZ63 million and $NZ65 million, a gain of 31% to 36%.
The company said the result was due to better inventory, favourable weather patterns and better than expected results from new stores.
The Kathmandu result follows a string of weaker performances by other retailers with companies like David Jones, Myer, Just Group and Noni B and Woolworths issuing sales and or profit downgrades for the year to June.
The company’s earnings will be out on September 21.
Meanwhile shares in electrical discounter Harvey Norman hit a new 52 week low of $2.13 yesterday as the company again failed to announce 4th quarter and 2011 financial year sales.
The shares hit a low of $2.13, down 8c. They ended at $2.15, off 6c, or more than 3% on the day.
They are now down 22c from their most recent peak of $2.35 on July 21.
That’s a fall of 9%.
Harvey Norman was originally due by market calendars to release its figures last week, based on the 2010 sales release date of July 26.
Sales for the nine months to March 31 were $4.7 billion, up 1.4% on a topline basis, but down 3.5% on a same store (like for like is the description used by Harvey Norman) basis.
