KMD kmd brands limited

Ann: FORECAST: KMD: KMD - Trading update 16 weeks to 16 November 2014

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    • Release Date: 21/11/14 12:51
    • Summary: FORECAST: KMD: KMD - Trading update 16 weeks to 16 November 2014
    • Price Sensitive: No
    • Download Document  2.67KB
    					KMD
    21/11/2014 12:51
    FORECAST
    
    REL: 1251 HRS Kathmandu Holdings Limited
    
    FORECAST: KMD: KMD - Trading update 16 weeks to 16 November 2014
    
    KATHMANDU HOLDINGS LIMITED
    ASX/ NZX/ MEDIA ANNOUNCEMENT
    21 NOVEMBER 2014
    TRADING UPDATE, 16 WEEKS TO 16 NOVEMBER 2014
    Key points (all amounts in NZD)
    - Group sales YTD to 16 November up 18.6% to $84.1m (actual exchange rates);
    - Same store sales, up 16.0% (constant exchange rates);
    - All three markets experienced strong same store sales growth;
    - Strong UK sales growth continues to support investment strategy;
    - Group gross margin yoy down over 5% pts for the first three months of
    FY2015, due to higher weighting of clearance sales, especially in Australia.
    
    Kathmandu Holdings Limited (ASX and NZX Code: KMD) today announced sales of
    $84.1 million YTD to 16 November 2014, a rise of 18.6% compared with the
    corresponding period last year. Same store sales grew by 16.0% during the
    period at constant exchange rates*1 (FY14 pcp +3.8%). In all three markets
    that Kathmandu operates same store sales growth was above 10% and the overall
    rate of online sales growth was at a similar level to last year.
    Kathmandu's acting Chief Executive Officer Mark Todd said that "Sales made in
    the post-Winter clearance campaign in August and September were above our
    expectations, and this was the primary reason for the strong same store sales
    outcome. Offsetting this result was the impact on gross margins from the
    pricing in that campaign, which focused on moving excess winter season stock
    out of the business".
    For the first quarter to the end of October gross margins were over 5% points
    lower than the previous year. Mr Todd noted that "We now expect overall gross
    margin for the first half of FY2015 to be below the previous year's result.
    However our first half-year profit result remains highly dependent on the
    more significant Christmas trading period from now to 31 January.
    Our operating costs are spread approximately evenly across the year, whereas
    revenue is weighted to our 2H trading. Because of this, and our UK brand
    campaign costs, we expect 1H earnings will be down on the same period last
    year."
    
    Mr Todd updated progress on the Company's store rollout and refurbishment
    programme. "Since 1 August we have opened eight new stores in Australia
    (Sydney (x2), Melbourne (x2), Perth (x2), Regional NSW and Brisbane). Our
    target is to open 15 new stores in FY15 and we already have one further site
    secured for opening in the second half of FY15".
    ENDS
    For further information please call:
    Mark Todd, COO
    +64212711328
    *1  Average conversion rate year-to-date NZ$/A$ 0.901 (FY13: 0.878) and
    NZ$/GBP) 0.497 (FY13:0.515)
    End CA:00257954 For:KMD    Type:FORECAST   Time:2014-11-21 12:51:32
    				
 
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