Up 13.58% on June 25, 2018, Kathmandu Holdings Limited (ASX: KMD) was well appreciated by its stakeholders as the group provided an update on its sales performance and forecast earnings for the year ended 31 July 2018. Just after the release of its trading performance, the stock climbed up and was trading at $2.635 (as on 25 June 2018).
KMD is anticipating that it will be able to generate EBIT in the range of $72-$77 million (after $2.0m Obōz acquisition transaction costs) and NPAT in the range of $48 to $52 million in FY18. Otherwise last year it was able to generate an EBIT of 57 million and $38 million of NPAT. Moreover, it reported an increase of 7.7 per cent in sales (year to date to 24 June 2018) above last year. The Gross profit margin (year to date to 24 June 2018) was 240 bps that is 2.4 per cent up from last year. This was driven due to improved full price sell-through, and a higher average selling price.
KMD’s second half was strong across both Australia and New Zealand and while Australian stores were experiencing double digit same-store sales growth. Further, the start of its key Winter promotion and Autumn Season have delivered higher sales and profit than planned. Initiatives taken by the Company like the successful launch of innovative new products, enhanced in-store customer experience, inspiring content and engagement on social media and digital channels, have contributed to its performance. It will release the full result for the year on 18th September 2018.
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