Kathmandu Brands has posted a net profit of $36.8 million, a 40 per cent fall in earnings compared with the year earlier.

The slide in after-tax earnings came despite the company increasing group sales by 6.2 per cent to record $979m in the year.

The company owns and operates Kathmandu, Rip Curl stores and wholesale business Oboz Footwear.

The group posted a net profit of $63.4m in FY21, its prior financial year.

Kathmandu Brands will pay a final dividend of 3 cents per share, representing a total dividend of 6 cents per share for the year.

Despite the drop in earnings, its dividend payout of $42.5 million is a record for the firm.

The company had a record second-half trading period but said lockdowns and ongoing Covid-19 disruption hit sales in the first half.

Kathmandu Brands chief executive and managing director Michael Daly said the company was able to deliver strong results despite the impact of Covid-19 disruptions.

"The brand achieved its highest ever sales result in Australia for the key winter promotion period during Q4, and its highest ever second half gross margin result," Daly said in an NZX update.

Daly said Oboz continued strong growth and experienced record demand in the year, despite supply challenges.

"With the effects of Covid now largely behind us and international travel returning, we are very focused on executing our growth strategy through expanding our global footprint, investing in digital platforms, leveraging operational excellence, and leading the industry through sustainability and innovation."

He said Rip Curl achieved sales growth across all channels and key international regions, especially Europe, Hawaii and South-East Asia.

"Rip Curl's wholesale order books remain significantly above pre-Covid levels, allowing us to better manage supply chain disruption through near-term inventory investment," he added.