Kathmandu Australia drops expectations after slow holiday sales

Outdoor retailer Kathmandu has seen sales fall over the first 15 weeks of the 2019 fiscal year after sales during the December Summer Sale failed to reach expectations, deflating the retailer’s projections for 1H2019. Same store sales for the 22 weeks ending 30 December fell 1 per cent year on year, falling 0.2 per cent in Australia and 2.4 per cent in New Zealand.

“Following strong same store sales growth in Q1, we are disappointed in trading results in Australia and New Zealand over the Christmas and Boxing Day period,” Kathmandu chief executive Xavier Simonet said.

“Despite sales being below expectation it is pleasing to see the improvement in retail gross margin and continuing strong growth from the recently acquired Oboz business.”

Gross margin improved to roughly 64 per cent over the period, partially offsetting the lower than expected sales to date for the 2019 year.

First half sales in US footwear brand Oboz are now projected to grow 35 per cent to approximately $23.5 million (NZ$27.5 million), and see a gross margin of 40 per cent.

Total group profits are expected to reach approximately 4 – 8 per cent above 1H2018, assuming current trends continue.