The Kathmandu Holdings Ltd (ASX: KMD) share price will be one to watch this morning after the adventure retailer released a trading update.
How has Kathmandu performed in FY 2019?
According to the release, Kathmandu has had a reasonably mixed finish to the 2019 financial year which ended on July 31.
Based on the company's unaudited results, management expects the company to report a 9.6% increase in total sales to NZ$545 million in FY 2019. This has been driven by the inclusion of the Oboz business and a 0.6% increase in group same store sales, comprising a 2.7% lift in Australia and a 3.9% decline in New Zealand.
Whilst this is a positive top line result given the tough trading conditions that many retailers are experiencing, it is worth noting that sales were up 13.3% to NZ$232 million in the first half.
Further down the income statement the company expects to report normalised earnings before interest and tax (EBIT) of between NZ$82.5 million and NZ$84 million. This will be an increase of between 10.6% and 12.6% on FY 2018's NZ$74.6 million. Unlike its sales, this will be an improvement on its first half normalised EBIT which was 10% ahead of the first half of FY 2018.
And finally, on the bottom line the company expects to report a net profit after tax between NZ$55.5 million and NZ$57 million, which will be a 9.9% to 12.9% increase on the prior corresponding period.
Kathmandu's managing director and CEO, Xavier Simonet, was pleased with the company's performance in the second half.
He said: "We were particularly pleased with the second half performance in Australia given we were cycling strong growth in our key winter period last year. New Zealand conditions were challenging. Oboz, acquired in April 2018, continued to deliver strong sales and EBIT growth in 2H, with continued progress anticipated in FY2020 and beyond."
Also on watch today will be the shares of AGL Energy Limited (ASX: AGL) and the Mirvac Group (ASX: MGR). Both companies are scheduled to release their respective full year results this morning.
