Adventure wear retailer Kathmandu has forecast a drop in earnings because of weaker than expected Christmas trading.
Kathmandu said on Thursday it expected earnings before interest, tax, depreciation and amortisation (EBITDA) in the six months to January 31 to be less than the previous corresponding period's $NZ23.2 million.
Sales in the five weeks since mid-November have been less than last year, the company said.
Trading has been stronger in New Zealand than Australia, and gross margins have been maintained at about the same levels as last year, Kathmandu said.
With six more weeks of trading before the end of Kathmandu's first half, the company said it was too early to provide more specific detailed guidance on either total sales or profitability for the full period.
"Our trading performance throughout the Christmas period to date has been below expectations, which is a reflection of weaker consumer spending," chief executive Peter Halkett said.
"But our overall profit result for the full year remains primarily dependent on second half year trading which last year contributed almost 70 per cent of our total year profit."
A number of actions have been initiated to recover the sales shortfall over the Christmas period and, subject to second half trading, full year profit growth remains achievable, he said.
NZN