Outdoor clothing and equipment company Kathmandu Holdings Ltd says its performance for the six months to January 31 is expected to be significantly ahead of the same period last year.

The company said some store sales rose as much as 10.3 per cent in the period, and would result in earnings before interest and tax between $NZ18.5 million and $NZ19.5 million, an increase of 26 per cent on the prior year.

Group sales are also forecast to be up between 16.3 and 18.2 per cent on the previous period.

Kathmandu chief executive officer Peter Halkett said the strong sales performance during the Christmas period in both Australia and New Zealand, coupled with improved gross margins have been the primary reasons for the year on year increase.

However, he added that "our overall profit result for the full year will remain dependent on second half year trading, when historically approximately 60 per cent of Kathmandu's full year sales are made".

Shares in Kathmandu climbed on the news, trading 14.13 per cent up at $1.575 at 1035 AEDT, against a flat benchmark index.

On Tuesday, Kathmandu shares closed at $NZ1.80. The company's full results for the half year will be released on March 17.