Kathmandu Holdings Ltd., a clothing and outdoor equipment retailer listed in theAustralian and New Zealand Stock Exchanges (ASX/NSX:KMD) has reversed a slack in its shares performance and recorded an uptick of 1cent to NZ$1.78 as at the 5 p.m. market close in Wellington today and a 1.84 percent hike to A$1.385 earnings per share in Sydney.

This happened, notwithstanding its earlier issued report that full-year earnings fell 37 percent as price cuts were done to increase sales, which rose by 14 percent to NZ$245.8 million.

In a report to the NSX, the company's profit margins were also dragged as net income slid to $7 million or NZ$9.4 million in the year ending July 31, 2010 from the $14.9 million recorded a year earlier.

The company based in earthquake-hit Christchurch state, said it has been a challenging time for the company, although this did not deter them from targeting the same level of sales and profits in the next fiscal year.

It hopes that consumer demand will finally pick up and allow them to pursue the establishment of 15 new outlets that could increase earnings.

"We'll be targeting the same level of increase in sales and profitability that we achieved this year," Chief Executive Officer Peter Halkett said on a conference call today.