Shares in Kiwi adventure clothing retailer Kathmandu (KMD) edged up half a per cent yesterday after the company produced a slightly stronger sales and profit guidance for the six months to January 29 than previously given.
The company said it expects to report first-half profit of $NZ9.9 million ($A9.5 million), topping its guidance of matching the $NZ9.4 million ($A9.0 million) it earned in the same period last year.
The company’s sales rose 3%, in constant currency terms, from a year ago, to $NZ196.3 million. Same store sales rose 3.45%.
“Despite gross margin pressure in the first half from foreign currency, we were able to grow our earnings through healthy same store sales growth in our largest market, rigorous cost control and working capital efficiency,” chief executive Xavier Simonet said in yesterday’s update.
In a trading update for the 15 weeks to November 13, the company said total sales were up 2.8% at constant exchange rates and same store sales +1.4% at constant exchange rates.
The shares rose half a per cent to $A1.84 on the ASX yesterday.
