Kathmandu slows down Aussie expansion
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Outdoor clothing retailer Kathmandu is putting the brakes on its store expansion in Australia after racking up a first half loss.
Disappointing sales at Christmas and in January as well as heavy discounting on excess winter stock were blamed by the retailer for pushing it into the red with a NZD1.8 million (USD1.4m) loss.
The gloom looks likely to continue, with sales during the seven weeks to mid-March down 2 percent on a year ago.
Questions & Answers
Q.Why is Kathmandu halting its expansion plans in Australia?
Why is Kathmandu halting its expansion plans in Australia?
Kathmandu is pausing its store expansion in Australia after reporting a first-half loss. Disappointing sales over Christmas and January, coupled with significant discounting on surplus winter stock, contributed to this decision.
Q.What were the main financial results for Kathmandu in the first half?
What were the main financial results for Kathmandu in the first half?
Kathmandu reported a first-half loss of NZD1.8 million (USD1.4m). This was primarily due to poor sales performance during the Christmas and January trading periods, exacerbated by heavy discounting.
Q.How have Kathmandu's sales performed recently, beyond the first half?
How have Kathmandu's sales performed recently, beyond the first half?
Sales figures for the seven weeks leading up to mid-March were down by 2 percent compared to the same period last year. This suggests continued challenges for the retailer into the current trading quarter.
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