The Warehouse Group forecasts lower sales and earnings before interest and taxes (EBIT) for the full fiscal year amid trading challenges.
In a stock exchange filing, the company said it expects sales from continuing operations to be between 6 per cent and 7 per cent lower than the prior year. Continuing operations exclude Torpedo7 but include results from TheMarket.com, which it is closing down.
Meanwhile, EBIT is estimated to be in the range of $22 million to $30 million, plunging from $83.4 million in the last fiscal year. This excludes a loss from discontinued operations and any potential restructuring costs.
The company noted it continues to face retail challenges due to weaker consumer demand and mild winter weather.
“Retail across New Zealand is under pressure, and we are no exception. Market conditions and cost of living pressures have continued to be challenging into our fourth quarter and we expect these conditions to continue through to our year end,” said John Journee, interim CEO at The Warehouse Group.
“We are taking decisive action internally to address areas we can improve. We are exercising tighter cost control and we have a laser focus on trading our core brands, The Warehouse, Warehouse Stationery and Noel Leeming.”