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Kathmandu’s profits hike on increasing online sales

Consumer Discretionary
ASX:KMD      MCAP $334.4M
18 September 2019 12:11 (AEST)

Retailer Kathmandu has seen its yearly profits jump 13 per cent during the 2019 financial year as online sales are on the rise.

The outdoor apparel specialists saw purchases online increase by 9.2 per cent, now making up over 10 per cent of all sales.

In-store sales were up in Australia and down in New Zealand, which balances out to a total growth of 0.6 per cent.

Kathmandu explained to shareholders through its results presentation that investment in its omnichannel platform has been a driver of growth.

According to the company, it is the sixth most searched Australian apparel site, based on statistics from June and July this year. After launching its interactive international brand campaign social media and digital reach increased 12 per cent.

Additionally, $10.3 million was spent on refurbishing and opening new stores, and its loyalty club saw members increase 12.4 per cent to 2.2 million.

The company is managing to increase its presence on the North American market as sales of Oboz saw a 30 per cent boost during the financial year. Kathmandu acquired Oboz footwear last year.

Overall, the company’s profits after tax came in at $57.6 million and earnings before interest and tax are up 12.7 per cent to $84.3 million.

The market has responded favourably to Kathmandu’s 2019 financial year performance. The company’s share price has risen 6.46 per cent today, currently sitting at $2.80 apiece, as of AEST 10:41 am.

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