The Warehouse Group’s first-half preliminary results showed that sales declined amid a sluggish economic recovery.
The group’s first-half sales fell 1.6 per cent to $1.61 billion, with the second quarter easing to a lesser decline of 0.9 per cent.
The company expects to report first-half earnings before interest and tax (EBIT) of between $18 million and $20 million.
“We’re encouraged by the positive customer response when we get our product and pricing right, and this will underpin our performance recovery as we deliver these improvements at scale,” said John Journee, The Warehouse Group interim CEO.
“Fixing legacy issues, improving our product offer and executing our Fighting Fit turnaround plan across each brand will take time.”
The company forecasts its second-half EBIT will be broadly in line with the $14 million loss before interest and taxes in the year-ago period.
It also anticipates the economy to recover by the end of the year, as inflation and interest rates fall.
“Whilst we are likely near the bottom of the discretionary retail spending cycle in New Zealand, this level of financial performance is unacceptable,” said Journee.
“We remain intently focused on driving improved performance while maintaining financial discipline and keeping costs and capital expenditure under control.”
