A record Rip Curl trading performance has boosted Kathmandu's start to the financial year.
Group sales were 12% up above last year, including a six month contribution from the surf brand.
Gross earnings are expected to be up to $49 million for the six months ended January 31, 2021.
During the half, trade at a number of the Group’s stores continued to be disrupted by COVID-19.
Some 60 Greater Melbourne stores were closed for over 11 weeks during the second lockdown and 14 Auckland stores were closed for over two weeks.
Trading in Greater Sydney was affected over the Christmas period by the Northern Beaches outbreak.
Airport stores in Australia as well as Rip Curl stores in Hawaii, Bali and Europe are still impacted adversely by either COVID-19 related travel restrictions or government mandated lockdowns and closures.
Commenting on the result, Group CEO Xavier Simonet said acquisitions helped drive performance.
“Our improved first half operating profit underlines the resilience of our Group and validates the diversification strategy, launched through the successful acquisitions and integrations of Rip Curl and Oboz.”
“Rip Curl’s record first half performance highlights the strength of its brand and quality technical products.
"Rip Curl’s direct to consumer business will now begin the Northern Hemisphere summer with strong momentum.
"Forward orders for the Rip Curl wholesale business are above pre-COVID-19 levels, with encouraging early indications for future seasons.”
“Kathmandu enjoyed robust sales growth in camping categories, with renewed interest in local travel and adventure activities within Australia and New Zealand.
"However, its performance was heavily impacted by low demand for insulation and rainwear resulting from the lack of international travelers to the Northern Hemisphere.
"To put the first half performance in context, Kathmandu’s profit weighting has historically been heavily weighted to the second half year, when winter in Australasia drives demand for insulation and rainwear.
“Oboz have delivered sales growth year on year, with the product innovation strategy pursued by the new Oboz management team reflecting in the forward order book, which is tracking well above pre-COVID-19 levels.”