The Warehouse says it’s seeing encouraging signs as sales improved in the third quarter as it offered discounts, but that’s led to a lower profit.
Key numbers for the 13 weeks ended April 27 compared with a year ago:
- Group sales $710.5m vs $695.5m
- Gross profit $223.2m v $227.8m
- Gross profit margin 31.4% vs 32.8%
Interim chief executive John Journee said its February sales were strong, while March and April were softer, but were better than the same period last year.
Persistent discounting in the retail sector, combined with mark-downs to clear seasonal merchandise, lowered The Warehouse Group’s gross profits and margins.
“This positive headway is a direct result of our team’s dedication to winning back customers with enhanced products and value,” Journee said.
“New on-trend homeware and apparel ranges, and better value everyday essentials are resonating well with customers.”
Its Red Sheds quarterly sales rose 1.9% from a year ago to $415.9 million, Warehouse Stationery sales fell 3.3% to $58.8m, and Noel Leeming sales improved 4.5% to $234.9m.
However, Journee said a warmer autumn had led to a slow start to winter merchandise sales.
“If sustained, [it] may negatively impact our planned Q4 performance.”
The Warehouse expected consumer demand to remain subdued in 2025 as tight economic conditions and global uncertainty eroded consumer confidence.
The company left its second half guidance unchanged.
rnz.co.nz
