Outdoor clothing and goods retailer, Kathmandu, says same store sales growth has been strong in the first quarter, and has reaffirmed its $30.2 million full year profit guidance.

In a statement issued before the Kathmandu’s annual general meeting on Friday, chief executive, Xavier Simonet, said sales growth for fiscal 2016 has been strong so far, particularly in the group’s largest market, Australia.

The retailer said audited figures show same store sales jumped 6.5 per cent in Australia, rose 2.1 per cent in New Zealand and declined 0.9 per cent in the UK during the 15 weeks to November 15.

“We expected an improvement in gross margin for the first half of FY2016 due to fewer clearance sales and it was good to see this eventuate,” said Simonet.

“We have made a solid start, which is encouraging, but our first half-year profit result still remains highly dependent on the more significant Christmas trading period from now to 31 January.”

Kathmandu’s chairman, David Kirk said that the retailer remains confident in improving on a “disappointing result” in FY2015.

“Despite the disappointing financial performance in the year we remain confident that Kathmandu has a bright future and we made some important progress in FY2015,” Kirk said.

Online sales grew by 28 per cent representing 6.2 per cent of sales. Ten permanent new stores were opened bringing the total to 160 stores. Kathmandu aims to operate 180 stores across Australasia with three new stores, including flagship store locations in Melbourne and Adelaide CBD’s already trading in FY16.

Want more Inside Retail? Subscribe to Inside Retail Weekly now and get our premium print publication delivered to your door every week.