Outdoor group Kathmandu says stores still closed due to virus

As key stores worldwide remain closed due to COVID-19 lockdown measures, outdoor group Kathmandu has reported a massive profit slide.

Kathmandu’s profit has plummeted by more than 80 per cent as key stores remain closed during the coronavirus pandemic.

The outdoor clothing and equipment group, which also owns Ripcurl surf brand, has posted a net profit of $NZ8.1 million ($A7.5 million) for the 12 months ending July 1, an 85.9 per cent fall on the previous year.

Its earnings (EBITDA) fell 15.3 per cent to $NZ83.4 million ($A77.1 million) for the 2020 financial year.

Kathmandu said retail sales started to recover as restrictions eased; however, Victoria’s stage 4 lockdowns, closures in Hawaii, Bali and airports had meant several crucial anchor stores were forced to cease trading.

Kathmandu’s profit has fallen by more than 80 per cent. Picture: David Mariuz/ AAP

“COVID-19 has continued to impact some key markets during the first seven weeks of FY21, with Melbourne, Auckland, Hawaii, Bali and airport store closures,” the company said.

“However, given post-lockdown retail store performance in FY20, demand is expected to return in these markets when stores reopen.”

Total global sales were down 17.1 per cent compared with the previous corresponding year, with the economic downturn sparked by the virus costing the group $NZ70 million ($A64.7 million).

Kathmandu’s Australian sales for the year were down 11.6 per cent over the period, with 117 stores being forced to close between April and May.

Kathmandu CEO Xavier Simonet says the business will capitalise on the growing appetite for outdoor activities. Picture: David Geraghty / The Australian

Kathmandu chief executive Xavier Simonet said the company was confident of a sales pick-up following the end of stringent lockdowns and border restrictions, as a large number of Australians are flocking to the outdoors.

“Our brands are well positioned to capitalise on increased participation in outdoor, beach and surfing activities following the end of the lockdowns,” he said.

Mr Simonet said over winter Ripcurl recorded a massive spike in wetsuit sales.

Kathmandu online sales were up 67 per cent on the previous year, with the company noting stores closures had increased its digital penetration.

Mr Simonet said Kathmandu was “consolidating” its business and would be reviewing the profitability of each of its stores.

The company has decided not to issue a dividend to shareholders for the 2020 financial year.

Its Oboz outdoor footwear company was impacted by approximately $NZ15 million ($A13.8 million) from the pandemic.