Outdoor equipment vendor, Kathmandu Holdings posted a narrow profit margin, which made the traders anxious that the profits season would see cost control, instead of growth.

Following this, it was reported that for the foremost time during the six sessions, New Zealand shares saw a downturn. The NZX 50 swelled 12.821, or 0.4%, to 3037.564. Within the index, 20 stocks witnessed a dip, 11 surged and 19 remained unaltered.

After the seller declared that the gross margins at 63% were less than last year's prediction, its shares dropped 12% to $1.80. The result was lower than both the 64.4% outcome in the preceding year, and 64% forecasted figure.

It was reported that yearly sales increased around 14% to $245.5 million.

Grant Williamson, a Director at Hamilton Hindin Greene in Christchurch said, "Kathmandu really disappointed the market. Sales held up well but the margins did not. Investors have been burned a number of times with spin-offs from private equity".

Amid other vendors, it was seen that kids' apparel chain, Pumpkin Patch's shares tumbled 5.4% to $1.77, while shares of Warehouse Group fell to 1.7% to$3.54.

Due to lack of growth, Telecom Corp. shares dipped 0.5% to $2.01. Also, the largest corporation on the exchange, Fletcher Building plummeted 0.4% to $7.57.