Kathmandu shares hit their highest level in a month after the outdoor clothing specialist lifted its full year earnings guidance, saying new products and better management had boosted margins.
Kathmandu said estimated earnings for 2015/16 would be in the range of $NZ49 million ($A46.81 million) to $NZ53 million ($A50.63 million), up from $NZ33.2 million in the previous year.
Estimated net profit for the year is now estimated at $NZ32 million ($A30.57 million) to $NZ35 million ($A33.44 million).
Chief executive Xavier Simonet said a large part of the year's sales figures depended on July trading, the final month for the company's financial year, but better margins and cost savings had improved the expected outcome.
"Despite the winter season starting late this year, product newness and careful management of promotional activity have resulted in a better than expected gross margin," he said.
The expected result is a substantial turnaround for the company, which in 2014/15 recorded a net profit of $NZ20.4 million, down 52 per cent on the previous year.
Kathmandu shares soared 21.5 cents, or 17.2 per cent, to $1.465, their highest value since June 1.
The company will give a further trading update in early August, ahead of its full year results on September 21.
Share
