Adventure clothing retailer Kathmandu thinks colder weather last month will help it recover a significant portion of the shortfall in sales revenue it saw in the early part of a warm winter.
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In June, Kathmandu said full-year earnings could fall between 10 per cent and 15 per cent on a year ago due to warmer winter weather.
But on Friday, it upgraded its forecast net profit after tax and said it now expects it to be in the range of $39.5 million to $42.5 million, down on the $44.2 million for the previous year.
Kathmandu's full-year result for the 2013-14 financial year ending July 31 will be released on September 23, but total sales of $392.9 million are expected, up $8.9 million, or 2.3 per cent, on the previous year, with same store sales expected to be up 4.2 per cent.
Earnings before interest and tax are expected to be in the range of $62.5 million to $65.5 million, compared with $63.4 million for 2012-13.
A colder July across Australia and New Zealand, particularly in the second half of the month, allowed the retailer to recover a significant part of its initial sales shortfall, the company said.
Chief executive Peter Halkett said early winter warm weather had ''significantly reduced customer demand'', but the change in temperatures meant the company was expecting to deliver ''a better full-year result for the 2014 financial year than we were anticipating a few weeks ago''.
''The improvement in sales and earnings in July once colder winter weather became established has resulted in a satisfactory outcome for our key winter sale event,'' Mr Halkett said in a statement to the Australian Securities Exchange.
