Kathmandu has reaffirmed its annual profit forecast following a healthy lift in sales during the key Christmas and new year trading season.
The outdoor clothing and equipment chain has released solid sales growth for the half year.
Unaudited figures show same store sales rose 3.8 per cent in the six months to January 31, compared to 0.6 per cent in the same period a year ago.
Total sales were up 9.1 per cent to about $NZ 195.7 million ($A179.19 million), compared to $NZ179.4 million in the prior corresponding period.
Kathmandu's chief executive officer Xavier Simonet said sales during the key Christmas and January trading period were in line with management expectations and improved gross margin and cost efficiencies also bolstered the group's performance.
Half year net profit is expected to be in the range of $NZ8.5 million to $NZ9.5 million, compared to the $NZ1.8 million loss the company made in the same period a year ago.
Mr Simonet said he was confident the company was on track to meet its full year guidance of $NZ30.2 million ($A27.65 million).
However, he also warned that it depended largely on the second half of the financial year.
"We expect approximately 55 per cent of sales to be made in the second half of the financial year and between 65 per cent to 70 per cent of earnings," Mr Simonet said in a statement on Monday.
"We also reconfirm that we remain on track to deliver full year net profit after tax of $NZ30.2 million."
The positive news has led to a jump in the dual-listed retailer's share price.
IG market strategist Evan Lucas said the results give hope that the retailer was turning around after more than a year of sluggish sales growth.
"It is good news from Kathmandu for the first time in a while and shows that margins are better than the market had expected," Mr Lucas said.
"It also reiterates that spending is going okay in Australia and New Zealand."
Kathmandu has previously blamed unseasonably warm weather, a fall in consumer spending and inventory troubles for its disappointing 2015 full year profit of $NZ20.4 million; down 51 per cent on its 2014 result of $NZ42.2 million.
This led to a change in leadership and a hostile takeover bid, which ultimately failed, from fellow New Zealand retailer the Briscoe Group last year.
Kathmandu shares were up 9.78 per cent, or 13.5 cents, on the ASX at $A1.515 at 1500 AEDT.
It is due to release its audited half year results on March 22.
Share
