Kathmandu Praises Digital Channels for 36% Sales Increase

April Davis By April Davis | 18 Sep 2018

Kathmandu has released its final results presentation for FY18, recording record growth across its digital channels.

In its FY18 results presentation, Kathmandu generated $497.4 million in sales, equating to a net profit of $50.5 million for the year. The company has attributed this strong growth to brand elevation and customer engagement strategies that have been implemented over the past 12 months, as well as an increase in its e-commerce and fulfilment capabilities.

“We were delighted to achieve record profits this year as we balanced sales growth with gross margin improvement,” Kathmandu’s Chief Executive, Xavier Simonet said.

“Sales growth was supported by the success of our key product groups, improved promotional execution, inspiring digital content, and an enhanced in-store customer experience. Top-line growth, combined with a focus on cost control, resulted in excellent profit growth.”

Some key achievements Kathmandu’s management team have highlighted include a 57 percent growth in social media reach, as the company’s global audience viewed the businesses social media videos more than 15 million times in FY18.

The adventure travel retailer says it used this social media engagement to interact with its Summit Club loyalty members, with the company closing the 2018 financial year with 1.9 million active members.

Through investment in its online and fulfilment capabilities, Kathmandu was able to increase its website traffic by 22 percent, leading to a 36 percent increase in online sales. Based on these results, online sales now make up 9.4 percent of the company’s total sales.

Australia was the most profitable market for Kathmandu in FY18, with an increase of 9.6 percent in sales for the country, leading to a gross margin increase of 1.8 percent. Total Australian sales for the financial period were 307.7 million compared to New Zealand, which generated $143 million, or a loss of 2.3 percent in generated revenue. Overall, the company has reported a 6.1 percent growth in total sales for the year.

In light of its positive sales results over the last 12-months, the company has announced it will reward its permanent staff for their role in improving sales with one-off bonuses of $1,000.

“We are delighted to pay-out an exceptional $1,000 one-off bonus to all Kathmandu permanent team members who are not part of an incentive program. This is an acknowledgement of the contribution of all Kathmandu team members to the continued performance and success of our company over the last three years,” Simonet said.

Kathmandu’s core Australian business has performed well over the past three years, with sales following an upwards trend. According to Simonet, this is because of the company’s continued efforts towards innovation.

“Our customers have reacted positively to innovative products and engaging brand content. Being an inspiring brand and bringing to market original, sustainable, engineered and adaptive products represent Kathmandu’s company ethos. Continuing to drive sales growth in our core market remains a key management focus.”

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