Outdoor goods retailer Kathmandu Holdings shares plunged 14.3% this morning after the company reported a 43.1% fall in profits.
Kathmandu says it expects no improvement in the retail in environment over the next six months.
The profit drop, for the six months ending January 31, was in comparison to the previous six-month period. The fall came despite a 15.4% increase in sales revenue for the same period – reflecting more competition.
Kathmandu reported a 27.1% increase in operating expenses and $NZ2 million in one-off costs in relation to a new warehouse management system and a new brand rollout.
Kathmandu is a vertically integrated retailer that sells mostly its own brand of outdoor products. It operates 110 stores across Australia (65), New Zealand (39) and the UK (6).