Finance Kathmandu says Australia-wide lockdowns impacting sales and earnings

Kathmandu says Australia-wide lockdowns impacting sales and earnings

Kathmandu coronavirus reopen
Adventure and outdoor retailer hit by recent lockdowns in Australia Photo: Kathmandu
Twitter Facebook Reddit Pinterest Email

Outdoor goods retailer Kathmandu is the latest chain to be financially hit by the recent coronavirus lockdowns across Australia.

After NSW announced a two-week lockdown on the weekend, up to 40 stores across the state are now closed until July 9.

Another 26 are closed in Western Australia, which on Tuesday began a minimum four-day lockdown.

And in Victoria, 62 stores were affected in June after a two-week lockdown.

CEO Michael Daly said sales and earnings have been hit.

“COVID-19 continues to be a disrupting factor,” he said in a statement on Tuesday.

“Excluding these impacts, Kathmandu had a solid start to the winter season.”

The NSW and Victorian lockdowns will lop about $13 million off Kathmandu’s underlying earnings.

Group sales for fiscal 2021 are now expected to be below expectations at around $866 million while underlying earnings are forecast at about $120 million.

However, Kathmandu said its surfing brand Rip Curl business still retains an upward sales momentum and is trading “strongly” in North America and Europe.

Kathmandu also owns the Oboz outdoor shoe brand, which is also experiencing strong trading conditions in the northern hemisphere.

The ABC reported Kathmandu shares were down 4.4 per cent to $1.42 at 12.15pm AEST.

-with AAP