The Warehouse Group has reported sales growth for the third quarter, reversing the decline in the first half.
Group sales for the 13 weeks ended April 28 rose 2.2 per cent to $710.5 million, with same-store sales up 2.4 per cent.
The Warehouse sales increased 1.9 per cent to $415.9 million, with same-store sales up 3.4 per cent. Warehouse Stationery sales fell 3.3 per cent, while Noel Leeming recorded a 4.5 per cent uplift.
Average retail selling prices declined 4.3 per cent as part of the group’s investment into price, which resulted in a 7.2 per cent increase in units sold.
“The group’s February sales performance was strong, while March and April sales showed softer trends however still exceeded the same period last year,” said interim CEO John Journee.
On the bottom line, gross profit slid 2 per cent to $223.3 million as a result of a lower margin.
“Whilst in part this was due to brand mix across the group, the retail landscape continues to see high promotional activity which, combined with our own strategic pricing reset across key product lines and markdowns required to clear seasonal merchandise, is placing pressure on our gross margin performance,” Journee explained.
The group anticipates subdued consumer demand for the remainder of FY25 as tight economic conditions and global uncertainty impact consumer confidence. However, possible further interest rate cuts may provide financial relief to some New Zealand households later this year.
