Trading update and 1H FY2019 profit guidance

Kathmandu Holdings Ltd
223 Tuam Street, Christchurch 8011 249 Park Street, South Melbourne, Victoria 3205
PO Box 1234, Christchurch 8140, New Zealand PO Box 984, South Melbourne, Victoria 3205, Australia
Phone: +64 3 373 6110 Fax: +64 3 373 6116 Phone: +61 3 9267 9999 Fax: +61 3 9267 9933
kathmandu.co.nz kathmandu.com.au

KATHMANDU HOLDINGS LIMITED
ASX/ NZX/ MEDIA ANNOUNCEMENT
03 JANUARY 2019
TRADING UPDATE AND 1H PROFIT GUIDANCE FOR THE HALF YEAR ENDING 31 JANUARY 2019
Kathmandu Holdings Limited (ASX and NZX Code: KMD) advised at our AGM on 23 November that, based
on trading during the first 15 weeks of the fiscal year, 1H FY2019 profit was expected to be strongly above
last year, albeit this was highly dependent on a successful Summer Sale. In Australia and New Zealand sales
during December have been below management expectations and prior year.
Same store sales for the 22 weeks ending 30 December 2018 are below prior year by 1.0% (at constant
exchange rates). Same store sales are below prior year by 0.2% in Australia, and below prior year by 2.4% in
New Zealand.
Partially offsetting lower than expected sales to date for 1H FY2019, is a c. 60 bps improvement in retail
gross margins to c. 64%.
Obōz sales for the first half of FY2019 are expected to grow by c. 35% to approximately NZ $27.5m, with
gross margin of c. 40%.
Notwithstanding the adverse impact of the NZD/AUD exchange rate on reported profit, assuming current
trends continue, total Group profits are now expected to be 4% - 8% above 1H FY2018.
Kathmandu’s Chief Executive Officer Xavier Simonet said “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. Despite sales being below expectation it is pleasing to see the improvement in retail gross margin
and continuing strong growth from the recently acquired Obōz business.”
Kathmandu will release the full result for the half year on Tuesday 26 March 2019.
ENDS
For further information, please call:
Reuben Casey, COO/CFO, +64 272727573