Why Kathmandu Holdings Ltd shares soared on upgraded profit guidance

Shares in small cap adventure equipment company Kathmandu Holdings Ltd (ASX: KMD) have rocketed up 15.5% to $2.68 at the time of writing off the back of upgraded EBIT and NPAT guidances.

Kathmandu today reported an upgrade to its sales performance and forecast earnings for the year ended July 31 2018, with EBIT up to between $72 million and $77 million from last year’s $57 million and NPAT up to between $48 million and $52 million from last year’s $38 million.

And the good news rolls on, with sales for the year-to-date up 7.7% on last year and Kathmandu’s gross profit margin 2.4% above its previous year – it’s little wonder Kathmandu’s trading volumes so far today are already well above average.

Kathmandu is very much a discretionary retailer, in the same realm as the likes of other emerging players like Lovisa Holdings Ltd (ASX: LOV) whose shares are up 1% at the time of writing to $11.92.

Similarly, Noni B Limited (ASX: NBL) is travelling well of late, with its shares up 1.1% to $2.97 at the time of writing.

7 of 8 People Are Clueless About This Trillion-Dollar Market

One of our investors has recently returned from a research trip to Silicon Valley... and has a warning for fellow investors:

Because he works for an organization dedicated to spreading great investing ideas, his video report is free today... so you can see it and decide for yourself.

Don't miss your chance click here to learn about this warning and how you might be able to profit!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!