Warehouse Group says its interim profit may fall between 10-15 per cent as the country’s largest publicly listed retailer contends with a weaker-than-expected run up to Christmas both at its stores and its financial services business.

Adjusted net profit after tax is expected to be between $38.5 million-$41 million in the six months ending January 29, it said in a statement.

Warehouse will release its complete first-half earnings on March 9 and provide an update on its strategy and plans to reduce costs, it said.

More than half of the retailer’s sales are generated by its general merchandise ‘red shed’ Warehouse stores and the second quarter of its financial year includes the peak Christmas period and generates most of the group’s sales and profit in its first half.

The company warned at its annual meeting last month that it would likely write down the value of its financial services business due to weaker-than-expected trading.

The retail operator said while sales growth had continued at The Warehouse, margin pressure in the face of an increasingly competitive retail environment, combined with a below expectation performance from Financial Services, were the two main contributors to the lower profit expectations.

“We will review the half year performance and unless circumstances require earlier guidance, we will update the market more fully when The Warehouse Group Half Year results are announced,” said Joan Withers, group chair.

“At that time, we will also provide an update on progress against Group strategy, including details of actions taken to reduce the Group’s cost of doing business.”

Warehouse shares last traded at $3.12, and have gained 17 per cent this year.