What is Happening to the Kathmandu Holdings Share Price?

Kathmandu Holdings
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What is Happening to Kathmandu Holdings Share Price?

Kathmandu [ASX:KMD] is retailer of outdoor and adventure clothing and accessories. It has over 100 stores across Australia and New Zealand.

Shares in Kathmandu have been trending up lately. They are up 47% from the close on June 29 to yesterday. They are now trading at $1.84.

Why Did This Recent Rise Happen to Kathmandu Shares?

The company has implemented a new plan to focus its promotional activity and improve its gross margins. That appears to be working for now.

On August 4 the company announced total sales were up 4% over the year to July 31.

What Now for Kathmandu?

The company is due to release its full year results on September 21. A high Aussie dollar is helpful for the company because its merchandise means it’s a heavy importer. The company will need to maintain its gross margins to drive profits. It’s also an interesting barometer of the Australian retail sector.

An interesting stock to watch for further developments and newsflow.

Callum Newman
Editor, The Daily Reckoning

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.
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