Kathmandu's key Australian market appears to be weathering the retail chill, with sales of its signature puffer jackets helping offset a revenue decline in New Zealand and propelling the company to a new full-year profit peak.
The outdoor retailer said net profit for the 12 months to August climbed 13.6 per cent to $NZ57.63 million ($A53.3 million), driven by an almost 10 per cent increase in total sales revenue to $NZ545.6 million ($A505.13 million).
Total sales in the major Australian market were up 4.5 per cent to $A321.4 million, with same store sales growth of 2.7 per cent.
This slowed from 7.5 per cent same store sales growth in FY18, which chief executive Xavier Simonet put down to three strong sales years cycling through.
Puffer jackets, or "insulation", were again the best seller in Australia but Mr Simonet said conditions remained difficult for retailers.
"People are talking about (retail) being tougher ... it's not getting any easier for anyone out there," Mr Simonet said on Wednesday.
Regardless, Aussie sales continued to prop up the company's New Zealand result, where total sales were down 3.1 per cent to $NZ138.6 million for the year and same-store sales growth dropped 3.9 per cent.
Mr Simonet blamed the NZ result on a late start to winter there.
On whether he expects revenue to continue to fluctuate due to increasingly variable weather, Mr Simonet said climate change had actually proven a positive for the business.
"As we know the weather is getting more variable... (and) extreme weather events can be quite good for our sales," he said.
Elsewhere, Kathmandu's US Oboz shoe business, which increased FY19 pro forma sales by 30 per cent to $US44.6 million following a successful integration.
"Oboz has accelerated our transformation from a leading Australasian retailer to a global brand-led multi-channel business, and has enabled us to diversify our channels, brands, products, and markets," Mr Simonet said.
Excluding Oboz, total Kathmandu group sales increased by 2.1 per cent for the year and 0.6 per cent on a same store basis.
Summit Club loyalty program members - who represent 70 per cent of total Kathmandu sales - increased by 12.4 per cent to 2.2 million during the year.
The company increased its final dividend by one NZ cent to 12 cents.
Shares in the company climbed by as much as 7.6 per cent to $2.83 in early trade, continuing a share price recovery that was kicked off by a positive trading update in August.
Wednesday's result met the profit guidance of $NZ56.5 million to $NZ58 million offered in August, but no further outlook has been provided for FY20.
Shares in the company were still 5.13 per cent higher at $2.765 by 1447 AEST.
Mr Simonet said sales in the first seven weeks of FY20 had improved in both Australia and New Zealand, with total group sales growth up by 6.1 per cent on a same-store basis.
This includes an 11.7 per cent same store growth in New Zealand and 4.0 per cent in Australia.
KATHMANDU PROFIT KEEPS CLIMBING
* Sales revenue up 9.7pct to $NZ545.6m ($A505.13m)
* Net profit up 13.6pct to $NZ57.63m ($A53.3m)
* Final dividend up one NZ cent to 12 NZ cents, fully franked