Kathmandu Holdings’ outgoing CEO, Peter Halkett, has sold 1.51 million of the company’s shares on market, reaping $4.4 million.

He disclosed Tuesday’s sale in a notice to the stock exchange on Wednesday, and Reuters data indicate the sale was at $2.95 a share.

The trade comes after Halkett exercised options to buy some 560,000 shares for $1.2m on September 9, just over a week after he announced his resignation after eight years as head of the Christchurch-based outdoor goods retailer.

Halkett held about 1.51m shares, or 0.75 per cent of the company, as at September 29, according to NZX data.

Last month the retailer posted a 4.5 per cent decline in annual profit to $42.2m, as earnings were hurt by a warmer start to winter, which dented trading of seasonal goods through a period when it holds one of its biggest annual sales.

The company plans to invest $5 million to expand its business in the UK and Europe this financial year, in the first phase of a three year strategy to build its global brand, which may dent earnings growth.

Retailers, particularly those in the rag trade, have been struggling to produce earnings growth, as international online sellers lure bargain hunters with cheaper products.

Outside of Australasia Kathmandu is focusing on boosting its own online sales rather than expanding its physical store network, in order to capture some of the global market.

Halkett leaves the business on November 25, and a recruitment process to replace him is under way.

Chief operating officer Mark Todd will act as CEO in the interim, having previously acted in the role last year when Halkett took a leave of absence to recuperate from a severe infection after a routine medical procedure.

Shares of Kathmandu fell 0.7 per cent to $2.94 on Wednesday and have declined some 16 per cent since the start of the year.

BusinessDesk