Kathmandu sees strong Xmas period

Fairfax Media

CONFIDENT: Kathmandu Holdings Ltd predicts a strong Christmas retail period for its outdoor gear as people "go back to basics" following the economic slowdown.

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Kathmandu Holdings Ltd predicts a strong Christmas retail period for its outdoor gear as people "go back to basics" following the economic slowdown.

"We'd expect a relatively strong Christmas to January period because our products are camping oriented," chief executive Peter Halkett told Sky Business News.

"In tough economic times people do tend to go back to basics.

"The camping grounds are full up and a lot of people are getting outdoors."

Mr Halkett said Kathmandu, based in Christchurch, was the market leader in camping equipment and outdoor clothing in Australia and New Zealand, and the aim was to take advantage of that position to pursue growth.

The company has 79 stores in Australia and New Zealand and plans to roll out 12 new stores this year and up to 70 in three to five years, Mr Halkett said.

Kathmandu floated on the Australian and New Zealand stock exchanges on Friday and rose from its initial public offer (IPO) price of $A1.70. The stock closed at $A1.76 on Friday on the ASX.

Mr Halkett said the publicity from the IPO would also help grow the company's profile.

Kathmandu was established 22 years ago in New Zealand and purchased from founder Jan Cameron in 2006 by private equity investors Quadrant Private Equity and Goldman Sachs JBWere.

Both firms sold out during the IPO.