Kathmandu Overview

Since its establishment 24 years ago, Kathmandu has become a leading specialist in quality clothing and equipment for travel and adventure in New Zealand and Australia.

Kathmandu has grown from a small retailer of adventure clothing and equipment to a vertically integrated business with a significant retail presence. Approximately 95% of sales in Kathmandu stores are Kathmandu-branded products, manufactured by third parties using Kathmandu sourced or specified material and designs. The Company does not sell these products via wholesale channels and consequently achieves both a wholesale and a retail margin on these sales.

Kathmandu has a track record of growth through new store rollout and believes there is significant further scope to expand. The Company’s store rollout will continue to be core to its growth strategy. Fifteen new stores are planned to open in FY2012. There are over 50 locations in Australia and New Zealand to assess for suitable new store sites. In addition, Kathmandu believes that there are further opportunities to drive earnings by improving existing store sales and margins through refurbishment, enhanced marketing strategies and expansion of product offerings.