Strong sales growth in Australia has lifted outdoor clothing specialist Kathmandu's expectations for its half year profit.
The adventure gear retailer expects to report a profit of $NZ9.9 million ($A9.5 million) for the six months to January 31, topping its previous guidance of a profit in line with the $NZ9.4 million ($A9 million) achieved in the first half of 2015/16.
In the 26 weeks to January 29, the company's sales were up three per cent from a year ago, in constant currency terms, to $NZ196.3 million ($186.5 million).
Same store sales rose 3.4 per cent.
Kathmandu's sales in Australia grew by six per cent to $A121 million, while sales in New Zealand increased by 0.9 per cent to $NZ68.8 million.
In the UK, sales were down 57.4 per cent to STG700,000 ($A1.1 million) following the retailers' move to close its British stores.
"Despite gross margin pressure in the first half from foreign currency, we were able to grow our earnings through healthy same store sales growth in our largest market, rigorous cost control and working capital efficiency," chief executive Xavier Simonet said.
Kathmandu shares rose one cent to $1.84 on the Australian share market.
The company will release its half year results on March 21.
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