The Board of The Warehouse Group (TWG) today reported first quarter ending November 1 retail sales of $634.5 million, up 7.7 per cent from the same quarter last year.
All the Group’s retail brands delivered strong sales uplifts in the quarter. In a statement to the NZX, the company said these sales results continue the positive trading momentum that the Group reported in the second half of FY15.
The Warehouse (Red Sheds) reported sales for Q1 of $373.9 million, an increase of 4.1 per cent, or $14.7 million, compared to the same quarter last year. Same store sales increased 3.6 per cent in the quarter, with the Red Sheds now recording 19 consecutive quarters of positive same store sales.
On a like-for-like basis, same store sales increased by 1.8 per cent, which the group suggested is a better indicator of underlying sales performance, as it accounts for the change in timing of Labour Day, which has fallen in Q1 this year, as opposed to Q2 last year.
The major drivers of sales growth in Q1 were the successful launches of new season ranges in the core Home and Apparel categories. This was supported by strong performances from the Gardening, Hardware & Automotive, Jewellery and Celebrations categories. This has been offset by lower sales in the Entertainment category as we continue to see market challenges in the Communications, Computing, Gaming and Music and DVD categories.
Commenting on the Red Sheds’ result, group CEO, Mark Powell, said, “Achieving 19 consecutive quarters of same store sales growth continues the positive momentum that has been building in the Red Sheds as a result of significant investment over the last four years. Significant progress on strategic initiatives in the business, particularly those focused on continuing to improve quality, range, price and our in-store experience, have been well received by our customers with both sales and transaction volumes showing growth in the quarter.”
The Warehouse Group’s other brands also enjoyed fruitful Q1 sales, with Warehouse Stationery (Blue Sheds) Q1 sales increasing by 7.7 per cent, to $62.8 million; Noel Leeming up 14.5 per cent, to $163.9 million; and Torpedo7 Group up 18.1 per cent, to $33.9 million.
