Kathmandu shares drop 12% after weak Christmas sales
Kathmandu Holdings Ltd share price has dropped up to 12% due to lower than expected sales during the Christmas and holiday period
Outdoor retail giant, Kathmandu has predicted sales will keep falling in the first 15 weeks of 2019, after recording lower than expected sales during the Christmas period.
Kathmandu Holdings Ltd shareprice has dropped up to 12% in early day trade on Thursday, after the retailer announced its revised forecasts.
Xavier Simonet, Kathmandu’s Chief Executive Officer 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.’
On the contrary, Kathmandu's recently owned US hiking boot business, Ozboz showed positive sales growth for 2019.
‘Despite sales being below expectation it is pleasing to see the improvement in retail gross margin and continuing strong growth from the recently acquired Oboz business.’ Mr Simonet said.
First half Oboz sales are expected to grow 35 % to $23.5 million (NZ$27.5 million), and see a gross margin of 40%.
At its AGM on November 23 last year Kathmandu announced thier trading year to date showing total sales growth of 8.4%, with strong same store sales up 6.3% from last year.
Upon these numbers management expected the first half profit to keep getting growing during the summer period, however group same store sales during the Christmas period were down 1% from last year.
Same store sales were also below prior year in Australia by 0.2% and by 2.4% in New Zealand.
Kathmandu Holdings Ltd share price
Upon the announcement Kathmandu Holdings Ltds fell 12% to $2.31 in early day trade, making it one of the worst performing shares on Thursday.
Kathmandu will release full results of half year on Tuesday 26 March 2019.
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