The Warehouse Group expects a significant increase in its operating profit for FY26, supported by improvements at Noel Leeming and Warehouse Stationery.
The group’s operating profit is forecast to be in the range of $20 million to $24 million for the year ended August 2, compared to $1.3 million in FY25.
This reflects modest improvement in gross profit margin achieved by Noel Leeming and Warehouse Stationery, as well as sustained cost discipline across the group.
Meanwhile, The Warehouse business delivered broadly flat margins, albeit with an improved performance in the fourth quarter. Management said that efforts focused on margin improvement are gaining traction leading into the new fiscal year.
“Consumer confidence remained subdued and customers continued to shop with a strong focus on value, with demand concentrated around key promotional and seasonal events,” the group said.
The Warehouse noted that the guidance remains subject to the completion of its year-end processes. The group will release its annual results on September 30.
Earlier this week, The Warehouse revealed the ‘This Is Warehouse Country’ campaign as part of its turnaround and transformation program.
Developed with TBWA New Zealand, the campaign launched across television, digital, social media, outdoor advertising and 84 The Warehouse stores, focusing on milestones that have connected New Zealanders with the retailer for more than four decades.
