09/21/2021 5:33 AM
Kathmandu, an outdoor sportswear retailer, reported net income of $ 63 million for fiscal year 2021. Photo / included
Kathmandu’s profits soared in fiscal 2021 with a full contribution from Rip Curl, but the retailer said store sales had been significantly impacted by the Transtasman Covid lockdown over the past six months.
Net income increased to $ 63.4 million for the year ended July 31, compared to $ 8.9 million a year ago, which included transaction costs related to the $ 368 million acquisition of surfing brand Rip Curl.
Adjusted earnings before interest, taxes, depreciation and amortization (ebida) rose 35.9 percent to $ 113.3 million and total revenue rose 15.1 percent to $ 922.8 million. The gross margins improved by 40 basis points to 58.7 percent.
The company has decided on a final dividend of 3 cents per share, which increases the total dividend for the entire year to 5 cents per share.
The NZX / ASX-listed outdoor gear and apparel retailer said strong sales performance was “driven by investment growth in surfing and hiking” and “strong order books for Rip Curl and Oboz shoe chain that are above pre-Covid levels “.
Kathmandu announced that it had received $ 16.6 million in net wage subsidies in Australia and New Zealand.
The group has 325 retail stores worldwide.
Group Chief Executive and Managing Director Michael Daly said Rip Curl had sales above pre-Covid levels in key regions of North America and Europe during the Northern Hemisphere summer season.
“Although Kathmandu felt the effects of travel restrictions related to Covid, we were satisfied with the early momentum after the brand relaunch in May 2021. This relaunch will build on a strong brand foundation and enable Kathmandu to grow into a truly global brand. “
“Oboz continues its strong performance, with sales growth reflecting its successful product innovation strategy and the diversification of its customer base. The forward order book is at its highest level and allows investments to support future growth.”
“Our updated corporate strategy ensures that we focus on the essentials as we move into fiscal 22 – building global brands with a focus on active outdoor activities, investing in digital platforms to give consumers a truly first-class unified commerce experience. Experience, operational excellence and sustainability [ESG] Guide.”
On the outlook, Daly said that despite the impact of the pandemic, the group is well positioned to capitalize on increased participation in outdoor activities.
And the global roll out of Covid-19 vaccinations was positive news for the company.
He said the group will continue to focus on growing its brands through advertising and sponsorship as well as sustainability initiatives.
“We will continue to invest in building our global brands through branding, sponsorship and sustainability initiatives, including expanding Kathmandu’s B Corp accreditation to all Group brands and setting science-based goals.”
“The wholesale order books of Rip Curl and Oboz are now well above pre-Covid levels. Rip Curl and Kathmandu are achieving like-for-like growth in retail sales, excluding Covid effects from store closures. Online sales continue to grow for all three brands.”
Kathmandu shares traded 1 cent to $ 1.45, but are up 14.06 percent in the past 52 weeks.