The Kathmandu Holdings Ltd (ASX: KMD) share price rose more than 10% on Monday after providing profit guidance for the year ended 31 July 2018.

Kathmandu is a multinational chain of retail stores which sells travel & adventure outdoor apparel and equipment.

The company said that net profit is expected to grow 26% to 37% this year compared to last year’s result. The forecast includes $2 million of acquisition costs.

Kathmandu attributed this improvement to both sales growth and increasing margins. Total sales are up 7.7% and Kathmandu’s gross profit increased by 2.4% due to higher prices.

Same-store sales across the group were up 4.8% in the year to date using constant exchange rates. Australian store sales were up 7.7% whilst New Zealand store sales fell 1.5%.

Kathmandu CEO Xavier Simonet said: “Our second half so far has been strong across Australia and New Zealand. The successful launch of innovative new products, enhanced in-store customer experience, inspiring content and engagement on social media & digital channels contributed.”

This follows from Kathmandu’s half-year profit growth of 23%. Over the past year, the Kathmandu share price has increased by nearly 40% according to Google Finance. 

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