10 May 2024

Warehouse Group profits, sales down for third quarter

9:48 am on 10 May 2024
The Warehouse store in Auckland.

The Warehouse group sales fell 9.2 percent in the 13 weeks ending April. Photo: 123rf

The Warehouse Group's third quarter sales and profits are down on the year earlier, amid "highly uncertain" trading conditions.

The retailer said group sales fell 9.2 percent in the 13 weeks ending April to $695.5 million over the year earlier and down 6.2 percent on the nine-month period.

Third quarter underlying profit was down nearly 13 percent to $227.9m with profit margin falling 130 basis points to 32.8 percent.

"Trading conditions remain highly uncertain," Warehouse chief executive Nick Grayston said.

"We are focused on gross margin improvements and continued tight control of costs for the final quarter of our financial year."

The Warehouse Red Shed sales fell 8.1 percent, with Stationery down 7.5 percent and Noel Leeming sales down 9.3 percent on the year earlier.

Grayston said the group was yet to find a buyer for its online store TheMarket.com and will close the business by the end of June.

"We are disappointed TheMarket.com did not meet our aspirations and we will close the front-end of the platform.

"However, we will use the engine we have built and harness the learnings and innovation we have acquired to continue to power the extended third party offering for The Warehouse website and app."

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