Outdoor camping and sportswear retailer Kathmandu posts record profit in 2021

Business

Outdoor sportswear retailer Kathmandu reported net profit of $ 63 million for fiscal 2021. Photo / Supplied

Kathmandu’s profit surged in fiscal 2021 with a full contribution from Rip Curl, but the retailer said store sales over the past six months had been significantly affected by lockdowns from transtasman Covid.

Net income reached $ 63.4 million as of July 31, up from $ 8.9 million the previous year, which included transaction costs related to the $ 368 million acquisition of surf brand Rip Curl. .

Underlying earnings before interest, taxes, depreciation and amortization (ebida) increased 35.9% to $ 113.3 million and total sales climbed 15.1% to $ 922.8 million. Gross margins improved 40 basis points to 58.7 percent.

The company declared a final dividend of 3 cents per share, bringing the total dividend for the entire year to 5 cents per share.

Listed outdoor gear and apparel retailer NZX / ASX said a strong sales performance was “driven by growth in participation in surf and hiking” and “strong forward order books for Rip Curl and the Oboz shoe chain, higher than pre-Covid levels “.

Kathmandu has revealed that it has received $ 16.6 million in net wage subsidies in Australia and New Zealand.

The Group has 325 retail stores around the world.

Group CEO and Managing Director Michael Daly said Rip Curl achieved above pre-Covid sales in key regions of North America and Europe during the northern hemisphere summer season .

“While Kathmandu has felt the impacts of Covid-related travel restrictions, we are pleased with the momentum that followed the brand’s relaunch in May 2021. This relaunch will build on strong brand fundamentals and position Kathmandu for become a truly global brand. “

“Oboz continues its strong performance, with sales growth reflecting the successful strategy of product innovation and the diversification of its customer base. The forward order book is at its highest level, allowing investments to support future growth.

“Our renewed group strategy ensures that we are focused on the things that matter most in FY22: building global brands focused on active outdoor activities, investing in digital platforms to provide consumers with an experience. of world-class unified commerce, operational excellence and sustainability [ESG] direction.”

Commenting on the outlook, Daly said that despite the impacts posed by the pandemic, the group is well positioned to capitalize due to the growing participation in outdoor activities.

And the rollout of Covid-19 vaccinations across the world has been positive news for the company.

He said the group will continue to focus on growing its brands through advertising and sponsorship, sustainability initiatives.

“We will continue to invest in building our global brands, through brand advertising, sponsorship and sustainability initiatives, which include the extension of Kathmandu’s B Corp accreditation to all brands in the group and the definition of scientific objectives. “

“Rip Curl and Oboz wholesale order books are now significantly higher than pre-Covid levels. Rip Curl and Kathmandu generate growth in retail sales on a like-for-like basis excluding the Covid impacts of store closures. Online sales continue to grow for all three brands. “

Kathmandu shares traded down 1 cent to $ 1.45, but gained 14.06% in the past 52 weeks.

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About Lonnie G. Mitchell

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