Australian Investment Blog

ASX:KMD 18/09/2018

Kathmandu (ASX:KMD) climbs on a strong result

Stock

Kathmandu (ASX:KMD) $3.06 as at 18/09/2018

Event

Kathmandu (ASX:KMD) delivered a stellar full year result this morning and the stock is trading up ~10% at time of writing. Sales beat market consensus coming in at $NZ497 versus $NZ493 while the dividend was a beat at NZ11c v NZ9c expected. While the company didn’t give guidance there were some very pleasing trends in terms of the result, specifically around gross margins which expanded after a weak FY17 period. The market is forecasting an increase in sales of ~14% in FY19 dropping down to profit growth of ~17% which for a stock trading on 12.3x (pre today’s move) and yielding ~5% fully franked, it looks attractive.

The company also gave some commentary around the acquisition of US outdoor footwear company Oboz which was completed earlier this year. Oboz has a strong customer base in North America & will provide a great platform to tap into one of the biggest outdoor wear markets as Kathmandu looks to America & Europe for growth. Kathmandu (ASX:KMD) Chart

Market Matters Take/Outlook

While the trends in KMD are looking attractive, and its valuation in far from stretched, we remain overall cautious on the retailers in the current environment, although concede that niche players such as KMD and Nick Scali for instance have continued to deliver strong numbers.

Subscribe to Market Matters Blog

Latest Reports

Weekend report 04/10/2025

Weekend Q&A: The ASX is on track for new all-time highs this week

The ASX200 ended last week up +2.3%, with the first three days of October already recouping all of September's decline. The healthcare sector made a welcome return to the winners' enclosure, ably supported by the influential miners and banks, while the energy sector was the only meaningful drag on the index. Only a flat week by the heavyweight iron ore miners reined in performance, although their sector peers worked hard to address their slumber, with 18 members of the materials sector closing out the week up more than +5%.

Afternoon report 03/10/2025

The Match Out: ASX finishes the week strong, APE jumps on CanadaOne acquisition

The ASX finished the week strongly, rising steadily through the session with strength in healthcare, tech and consumer names more than offsetting softer trade in energy and utilities.