New Zealand-based outdoor adventure wear company Kathmandu is the latest retailer to succumb to soft Christmas sales with management saying earnings for the December half are now expected to be below last year.

As recently as last month, Kathmandu said sales for the 15 weeks to 13 November had increased 16 percent on the prior corresponding period but same store sales over the last five weeks have dropped below last year's levels.

Company CEO Peter Halkett confirmed that Kathmandu could not blame the dour summer weather which should have favoured the company's wet gear. ''We believe it's more of a consumer related matter,'' he said.