Kathmandu's sales have risen in recent weeks but the retailer says conditions remain tough.
The listed outdoor clothing and equipment retailer held its annual meeting in Auckland on Friday.
It says it generated $56 million of sales in the fifteen weeks to mid-November, 16% more than in the same period a year ago.
Sales at stores open more than a year rose 7.6%.
Kathmandu chief executive Peter Halkett says despite the difficult trading conditions, sales were in line with expectations.
Mr Halkett says sales momentum has been steady but first half year profit is highly dependent on the Christmas and January trading period.
He also says the company will open 15 new stores this year and carry out major refurbishments on existing outlets.
Mr Halkett says the effort will go into upgrading and relocating existing stores because the current network is "not fully optimised". "So basically bigger stores, better located, more prime loctions."