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Published
Sep 18, 2018
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Kathmandu profits rise, targets US and European expansion

Published
Sep 18, 2018

Outdoor specialist Kathmandu is targeting major growth in Europe and the US with the company saying Tuesday that its two brands have “significant” growth potential outside its core Australia and New Zealand markets.


Kathmandu



The company owns its signature brand and the acquired US label Obōz Footwear, which it bought earlier this year as part of its international growth strategy.

At the moment, only just over 4% of its revenue comes from international markets but it wants to become a global outdoor apparel and equipment name and Obōz will be key for it in the US.

But it also sees Europe as ripe for growth and CEO Xavier Simonet said: “It’s an exciting time for the business as we welcome Obōz to the group and accelerate our international growth. In Kathmandu and Obōz, we have two great brands with significant growth potential in North America and Europe.”

The expansion focus comes after the company worked to boost profits by cutting back on markdowns and it has seen a third successive year of rising earnings as a result. Its net profit was 33% higher in the latest 12 months to July 31, hitting NZ$50.5m. 

That came on the back of a 7.5% like-for-like sales rise in Australia, although comp sales dipped 2.5% in New Zealand. Total sales rose 9.6% in Australia to $307 million while total sales dropped 2.3% in New Zealand to $143 million. 

Overall its gross margin was higher at 63.4% (following 61% a year ago) as it both sold more items at full price and introduced more higher-priced products.

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