Outdoor clothing and equipment retailer Kathmandu is expecting a turn around in business.

The company posted a $1.8 million loss last year, but is expecting its first half year profit this year to be between eight and a half to nine and a half million dollars.

It's putting that down to a nine per cent rise in sales, cost efficiencies and increased margins.

Chief Xavier Simonet says a full year profit result remains dependent on successful second half year trading.

But he says they remain on track to deliver a full year after tax profit of just over 30 million dollars.