The Kathmandu Holdings Ltd (ASX: KMD) share price has gained 1.9% today to trade at $2.14 after the travel and adventure retailer provided a trading update this morning.
In its announcement, the company said it had achieved total sales of $445.3 million during the 12 months ended 31 July 2017, representing an increase of 4.6% on the previous year. Same store sales were even stronger, growing 5.5% on the previous year at constant exchange rates. Its performance was particularly strong in Australia, where same store sales rose 6.9% while they were up 3.6% in Kathmandu's home market of New Zealand.
Pleasingly, Kathmandu's sales growth hasn't come at the expense of the group's profitability. In fact, Kathmandu's operating profit (EBIT) and net earnings (NPAT) are expected to grow at a much higher rate, with EBIT now forecast to be around $56.5 million for the full year and NPAT around $37.7 million. At the mid-point of the guidance ranges provided, EBIT and NPAT are expected to have grown 11% and 12.5% year-over-year, respectively.
Although those figures have not yet been audited, the news certainly appears positive for the retailer's shareholders – particularly in light of the struggles that many other retailers have faced recently.
Kathmandu is expected to announce its audited full-year results on 26 September 2017, while its annual general meeting is scheduled for 24 November.
