File photo. Photo: RNZ / Nate McKinnon
Outdoor clothing and equipment retailer KMD Brands (formerly Kathmandu) has posted a 40 percent drop in full year profit as Covid-19 disrupted trading.
Group chief executive and managing director Michael Daly said the company navigated "substantial" challenges due to Covid-19 in the first half.
Operating earnings for the year were $179.9 million, down from $204.3m the year earlier, as its Kathmandu and Rip Curl brands were affected by lockdowns on both sides of the Tasman.
Sales for its Oboz brand were heavily impacted by the three-month Covid closure of its factories in Vietnam, made worse by freight delays.
KMD said 40 percent of Oboz orders for the year were not fulfilled.
However, despite the difficulties, the company posted record sales of nearly $980m.
"Although impacted substantially by Covid lockdowns and restricted travel in the first half of FY22, Kathmandu saw a strong rebound in the second half. The brand achieved its highest-ever sales result in Australia for the key winter promotion period during Q4, and its highest- ever second half gross margin result," Daly said.
The company was now looking ahead at its growth plans.
"With the effects of Covid now largely behind us and international travel returning, we are very focused on executing our growth strategy through expanding our global footprint, investing in digital platforms, leveraging operational excellence, and leading the industry through sustainability and innovation," Daly said.
Looking ahead to 2023, Daly said with the return of international travel and uninterrupted trade, KMD was well positioned to deliver continued sales and earnings growth.
Key numbers for the 12 months ended July compared to a year ago:
- Net profit $36.8m vs $63.4m
- Revenue $979.8m vs $922.8m
- Operating profit $67.4m vs $89.3m
- Final dividend 3 cents a share