Trading update ahead of AGM

*1
Average conversion rates year-to-date NZD/AUD 0.912 (FY17 0.951) and NZD/GBP 0.545 (FY17 0.565)


KATHMANDU HOLDINGS LIMITED
TRADING UPDATE AHEAD OF AGM
21 NOVEMBER 2017

FIRST QUARTER FINANCIAL RESULTS:
Kathmandu Holdings Limited (ASX and NZX Code: KMD) today announced improved first quarter
Earnings before Interest and Tax (unaudited) compared to last year.
Kathmandu started the financial year with c. 40% less clearance stock than last year. A lower
clearance sales mix improved gross margin 240 basis points (2.4%) above last year with the added
benefit of lower inventory handling costs. Total sales were impacted during the clearance focussed
selling periods of August and September. October sales in both Australia and New Zealand were
above last year.

SALES UPDATE:
Sales for the 16 full weeks to 19 November 2017:
 Total sales +0.6% at constant exchange rates (+3.6% at actual exchange rates
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);
 Group same store sales -1.6% at constant exchange rates.
In our largest market Australia, same store sales grew by +2.9% while New Zealand declined by
-10.3%.
Kathmandu’s Chief Executive Officer Xavier Simonet said “We started the financial year with
significantly lower levels of clearance stock than the same time last year. During the first quarter
we sold more current season product than last year, but less clearance stock. This meant
improved gross margin, and with total sales broadly in line with last year, we ended our first quarter
with an improved earnings result.”
Mr Simonet added “we have maintained our strong working capital position, and we expect first
half profit to be above last year. As always our first half-year result is highly dependent on the more
significant Christmas trading period.”

ENDS
For further information please call:
Reuben Casey, CFO
+64 272727573