Retailer Kathmandu's full year profit has fallen by 11 per cent but it expects an improved result in the year ahead.
The outdoor clothing and equipment retailer made a net profit of $NZ34.9 million ($A27.87 million) in the year to July 31, down from $NZ39.1 million in the previous year.
Sales were higher than in the previous year, but profit margin shrank due to the cost of a new loyalty program, and costs were higher due to store relocations and refurbishments.
The company opened 10 new stores in the year, taking the total number to 120.
"We will improve company performance by continuing to invest in our store network through opening new stores and relocating or refurbishing existing stores," chief executive Peter Halkett said in a statement.
Provided there is no further deterioration in economic conditions, the company expects an improvement in performance in the year to the end of July 2013, he said.
Kathmandu's total sales rose by 13.4 per cent from the previous year to $NZ347.1 million ($A277.20 million).
Same store sales growth was 5.7 per cent in the year to July.
Same store sales growth was strongest in New Zealand, at 9.2 per cent, ahead of 6.5 per cent growth in Australia.
Same store sales in the United Kingdom dropped by 7.7 per cent from the previous year.
Kathmandu declared a fully franked final dividend seven NZ cents per share.