NZ shares fall; led by Kathmandu decline

New Zealand shares declined, led by Kathmandu after the outdoor clothing and equipment retailer posted a decline in full year earnings.

The NZX 50 Index fell 9.7 points, or 0.25 per cent, to 3809.57. Within the index, 25 shares fell, 16 rose and 9 were unchanged. Turnover was $114 million.

Shares in Kathmandu fell 6.3 per cent to $1.64. The Christchurch-based company posted an 11 per cent decline in full-year profits to $34.9 million on Thursday, while sales rose 13 per cent to $347 million. The retailer said it expects a better performance in 2013.

"People got a little bit excited and once they dig deeper there isn't growth coming until the middle of next year. That initial excitement has faded," said Mark Lister, head of private wealth research at Craigs Investment Partners.

Pumpkin Patch, the childrens' clothing retailer, dropped 1.7 per cent to $1.15. Its full year results will be released on Tuesday. Forsyth Barr analyst Jeremy Simpson is forecasting a 22 per cent rise in reported profit to $70.6 million and a sales increase of 15.5 per cent to $230.5 million.

Shares in AMP NZ Office, which is changing its name to Precinct Properties New Zealand, fell 2.1 per cent to $5.52 after the company announced it has agreed to buy Auckland's Westfield Downtown Shopping Centre from Westfield Group and Westfield Retail Trust for $90 million.

The gainers were led by Heartland New Zealand, the lender formed from the merger of Pyne Gould's Marac Finance with the Canterbury and Southern Cross building societies, up 3.2 per cent to an 11-month high of 64 cents.

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