Kathmandu reveals 128 store closures due to lockdown have hit bottom line

A major retailer has revealed a swath of its stores across Australia have been forced to shut doors because of the evolving coronavirus situation.

Outdoor retailer Kathmandu has revealed a swath of its stores across Australia have been forced to shut their doors because of the evolving coronavirus situation.

In a statement released to the Australian Securities Exchange, Kathmandu flagged group sales for the 2021 financial year are expected to be lower as a result of the litany of shutdowns occurring in a number of states and territories.

Due to the NSW lockdown, Kathmandu has closed 40 shops for the next two weeks, while the Perth four-day lockdown has caused 26 stores to close.

The retailer noted these closures are off the back of 62 stores being impacted during Victoria’s most recent lockdown.

40 NSW stores are closed because of the lockdown. Picture: Aaron Francis / The Australian

For financial year 2021, Kathmandu is expecting group sales to be approximately $930 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) are estimated to be $120 million.

The company noted the impact of the NSW and recent Victorian lockdowns and stricter border restrictions is anticipated to hit EBITDA by approximately $13 million.

Kathmandu also owns the Ripcurl and Oboz brands.

Kathmandu chief executive Michael Daly said the hit comes despite a positive start to the winter trading season.

The lockdown is expected to be a $13 million hit to EBITDA. Picture: David Mariuz / AAP

“Covid-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu,” he said.

“Excluding these impacts, Kathmandu had a solid start to the winter season, and Rip Curl’s sales momentum continues.

“Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our Group benefits from a diversified mix of channel and geographies.”

Originally published as Kathmandu reveals 128 store closures due to lockdown have hit bottom line