Kathmandu (ASX:KMD) climbs on a strong result
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Kathmandu (ASX:KMD) $3.06 as at 18/09/2018Event
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
