Warehouse Group lifts profit

the warehouse groupAuckland-based retailer, The Warehouse Group, posted retail sales of $655.91 million for the first quarter ending October 30, up 3.9 per cent from the previous corresponding period, with uplifts across all its brands ahead of the Christmas trading period.

Group online sales were $42.7 million, up 22.1 per cent compared to the same quarter last year. Total online sales has grown to 6.7 per cent with growth coming from ‘click & collect’, especially in Noel Leeming and The Warehouse.

“The sales results for the first quarter are important, however Q2 is where most of the sales and profit performance for the half year occurs,” said Nick Grayston, group CEO. “We are focused on improving the fundamentals of the business and still have a lot of work to do to achieve the levels of profitability that we see are possible.”

Grayston said the competitive environment is tougher every year. “And with the more international players focusing on our domestic market, both physically and online, it is more important for us to execute our plans well, to ensure that we are relevant, competitive and profitable in the future.”

The Warehouse reported sales for the first quarter of $379.6 million, an increase of 1.0 per cent or $3.6 million compared to the same quarter last year. Same store sales increased 1.7 per cent in the quarter. Gross margins have remained consistent with last year. The business has absorbed the impacts of currency volatility, while continuing to invest in price for our customers.

Major contributors to its sales growth in Q1 have been the key categories of Home, Leisure and Apparel. There have also been good performances across Hardware & Automotive, Appliances, and new seasonal Homeware ranges.

“Our new season designs, especially in our Basics range across Menswear, Womenswear and Childrenswear, have been well received by customers,” Grayston stated.

Warehouse Stationery reported sales for the first quarter of $63.7 million, an increase of 1.4 per cent or $0.9 million compared to the same quarter last year. Same store sales increased 2.3 per cent in the quarter.

Noel Leeming reported a 12.0 per cent increase in sales of $183.6 million, compared to the prior corresponding period. Quarterly same store sales increased 10.5 per cent.

Torpedo7 Group reported sales for the first quarter of $37.8 million, up 11.5 per cent compared to the same quarter last year.

The Warehouse Group Limited comprises 93 Warehouse stores, 77 Noel Leeming stores and 67 Warehouse Stationery stores in New Zealand plus several online businesses. The Group had an annual turnover of $2.9 billion in FY16 and employs over 12,000 people.

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