Global expansion is back on the table for Kathmandu after the outdoor clothing and camping gear retailer returned to profit.
Kathmandu recorded a net profit of $NZ9.4 million ($A8.38 million) in the six months to January 31; a major turnaround from the $NZ1.8 million loss it made the same period a year ago.
Cost cutting and a strong rebound in Christmas and January sales helped Kathmandu achieve the higher end of its profit forecast of $NZ8.5 million to $NZ9.5 million released last month.
After successfully fending off a takeover bid last year, chief executive Xavier Simonet says the company was now ready to grow the brand overseas.
This comes six months after Kathmandu announced it would shut its four bricks and mortar British stores and abandon expansion plans in Europe to focus on its Australian business, which at the time was hit hard by heavy discounting on excess winter stock.
Mr Simonet, who took the helm in late June, said Kathmandu is investigating international wholesale and franchise possibilities, including trading in department stores and major sport stores overseas.
"There are two big opportunities," he said.
"One is through wholesale partnerships with online or brick and mortar retailers internationally and the other is the franchising approach.
"If you look at our big competitors internationally, The North Face, Patagonia and Columbia, this is the type of blended model they are using."
Mr Simonet said the company would investigate these options while maintaining growth in its Australian and New Zealand business.
He reaffirmed full year profit guidance of $NZ30.2 million, however he cautioned that the result depended on its key second half which includes Easter and winter.
First half sales jumped 9.3 per cent to $NZ196 million, on the back of same store sales growth and expansion of the store network.
Same store sales increased in all three of Kathmandu's markets - Australia, New Zealand and the United Kingdom.
Australia's same store sales rose 4.3 per cent, NZ's 3.1 per cent and UK's 1.5 per cent.
CMC Markets chief market strategist Michael McCarthy said the flat share price showed investors had already priced in a strong result.
"This sort of growth in a low growth environment is attractive and I suspect we could see an institutional response to these numbers over the coming trading sessions," he said.
Kathmandu's shares were 0.75 cents, or 0.5 per cent, higher at $1.505 at 1410 AEDT.
KATHMANDU BACK IN THE BLACK:
* Net profit $NZ9.4m, compared to $NZ1.8m loss
* Revenue up 9.3pct to $NZ195.98 million
* Interim dividend unchanged at NZ3.0 cents a share
