Retail in Asia

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Kathmandu upgrades interim profit forecasts as sales, margins rise

Kathmandu’s decision to fight off a hostile AUD324 million (USD229.2m) takeover offer has been vindicated following a strong rebound in sales and earnings over Christmas and January, shareholders say.

The company now expects earnings before interest, tax, depreciation and amortisation between NZD21 million and NZD22 million for the six months ended January 31 – well above market consensus forecasts about NZD8.9 million and EBITDA of NZD6.8 million a year ago.

Kathmandu expects to swing to a first-half net profit of NZD8.5 million to NZD9.5 million, from the NZD1.8 million loss in the year-earlier period.