The Warehouse Group sales climb

the warehouse groupThe Warehouse Group reported positive growth across all of its retail brands (The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7) and financial services, on the back of strong sales and effective management.

The company posted a strong profit of $57.2 million for the six months to January 31, a 32 per cent increase from last year’s $43.3 million, driven by its homeware and clothing sales. The adjusted profit, which stripped out one-off costs, increased 22 per cent to $45.6 million in line with a forecast last month.

The company stated that while the first half of 2015 was a particularly difficult trading period and included a number of one-off costs, the first half of 2016 “has been achieved by a positive retail environment and changes that we have made to the businesses, focusing on improving our customer offer, margins and cost control. These changes are expected to continue to deliver benefits into the future.”

The Warehouse Group posted an 8.4 per cent increase in revenue of $1,568.5 million, an increase from last year’s $1,447.3 million. Its operating profit increased 28.3 per cent to $73.117 million compared to last year’s $56.990 million. Its earnings before interest and tax increased 41 per cent to $89.377 million compared to the $63.383 million from the prior corresponding period.

The Warehouse Group’s online sales in the country saw an increase of 24.1 per cent to $52.8 million.The company also announced that they expect the second half profit to be in line with the second half result last year. The expected Adjusted Net Profit After Tax for the full year is between $61 million and $64 million which would represent a 7 per cent to 12 per cent profit growth year on year. The Warehouse Group reported an 11 cents interim dividend payable on April 15.

The Warehouse Group Limited comprises of 93 Warehouse stores, 72 Noel Leeming stores, five Lifestyle Appliance stores and 66 Warehouse Stationery stores in New Zealand and several online businesses. The company had a turnover of $2.8 billion in FY15 and employs over 12,000 people.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.