Aussie and NZ retailer Kathmandu, has acquired Oboz Footwear in a $60m deal as part of a set of positive financial results showing increased half year profits.
The deal also includes an earn-out of up to $15 million, subject to Oboz achieving financial milestones this year.
Xavier Simonet, Kathmandu’s CEO, said: “The acquisition of Oboz enables the Kathmandu Group to accelerate our international growth, and diversifies our product mix, geography and channels to market.”
He continued: “I admire the success of Oboz in North America. They are an innovative and authentic outdoor brand with deep roots in Montana, driven by a passionate and successful team. It seems very natural that after so many years of close collaboration we deepen our relationship.”
John Connelly, president and founder of Oboz, said: “Kathmandu and Oboz share many common values: passion for the outdoors, focus on product design and innovation, customer-first culture, collaborative team work and strong emphasis on sustainability.”
Kathmandu has 163 stores across Australia and New Zealand (one in the UK) and total sales of Australian $447 million last year.
The news came as Kathmandu announced net profit after tax of NZ$12.3 million for the six months ended 31st January 2018, an increase of NZ$2.3 million compared with the prior corresponding period.
Earnings before interest and tax (EBIT) increased from NZ$14.8 million to NZ$18.0 million for the same period.
Chief Executive Xavier Simonet commented: “We are focused on delivering profit growth in our core markets for the second half of FY18. The Australasian business provides the foundation for our brand to expand internationally. As always the success of our full year result is still very dependent on the key promotion periods to come. We will continue to inspire our customers by creating distinctive, sustainable, quality products and by promoting our brand authenticity.
Sales grew by 3.7 per cent in Australia, our largest market. New Zealand first quarter sales were impacted by lower levels of clearance stock. In the last six weeks of the first half-year, New Zealand same store sales growth was +1.9 per cent. Online sales now comprise eight per cent of group sales.
In a further trading update, for the six weeks ending 11th March 2018, Group Sales were 7.9 per cent above last year at constant exchange rates. Same store sales growth was 7.5 per cent for Australia and 5.1 per cent for New Zealand. February gross margins were also above last year in both countries.