Kathmandu Holdings Limited, the New Zealand and Australia-based outdoor retailer that recently-acquired the Oboz footwear brand, reported net earnings rose 32.9 percent in the year ended July 31 on an 117 percent revenue gain.

The company, which completed its acquisition of US-based Oboz Footwear in April 2018, experienced a record year for sales, profit, operating cash flow and full-year dividend payout.

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

The company posted the following results and accomplishments for the year ending July 31, 2018:

  • Net Profit After Tax (NPAT) increased by 32.9 percent to NZ$50.5m (US$ 33m)
  • EBIT increased by 30.9 percent to NZ$74.6m (US$ 46m)
  • Sales increased by 11.7 percent to NZ$497.4m (US$330m)
  • Gross profit increased by 14.2 percent
  • Obōz acquisition successful
  • $1,000 one-time bonus to all Kathmandu permanent team members

Oboz Acquisition and Kathmandu North American Launch

During the year, Kathmandu acquired Obōz, the authentic, U.S.-based outdoor footwear brand. Simonet commented, “The Obōz acquisition provides us with the opportunity to accelerate our international growth and diversify our product mix, geography and channels to market. Kathmandu and Obōz are well aligned in core principles of brand development, innovation, quality, customer service and sustainability.”

The acquisition of the Oboz also gives Kathmandu the opportunity to introduce its wholesale business in North America. Kathmandu will launch in this market at the upcoming Outdoor Retailer Winter Market trade show from November 8-11 in Booth 44073-UL in Denver, CO.

“We are excited by the opportunity to develop complementary international wholesale channels for both the Obōz and Kathmandu brands,” said Simonet.

John Connelly, president of Obōz and Kathmandu North America, commented: “Kathmandu is an outstanding success story in Australia and New Zealand. We are eager to launch Kathmandu in North America by leveraging the expertise and capabilities of Obōz. Kathmandu and Obōz share the same values of controlled distribution, long term partnerships with authentic outdoor retailers and sustainability.”

Sustainability Accomplishments in 2018

Sustainability is a core focus for Kathmandu and its teams with five key highlights and achievements in FY18:

  • Kathmandu became the first brand in Australasia to be Fair Labor Association (FLA) certified
  • Kathmandu is ranked #2 in the world by the Textile Exchange for preferred materials
  • It got an ‘A’ grade in the Ethical Fashion Report
  • It reached 80 percent towards its zero landfill waste target
  • Kathmandu recycled 6.7 million bottles and converted the material into its gear

Employee Bonus

Kathmandu also delivered a one-time $1,000 (NZ) bonus to all permanent Kathmandu team members—approximately 1,800 employees. Xavier Simonet commented: “We are delighted to recognize the role and contribution of all Kathmandu team members in the continued performance and success of our company over the last three years.”

Outlook for the Future

In conclusion, Simonet commented, “It is highly motivating for our team to have achieved three years of strong profit growth in our core Australasian business. 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. It’s also an exciting time for the business, as we welcome Obōz and accelerate our international growth. In Kathmandu and Obōz, we have two great brands with significant growth potential in North America and Europe.”

Photo courtesy Kathmandu