25 Nov 2011

Warehouse expects to make less this year

1:18 pm on 25 November 2011

The country's largest listed retailer The Warehouse has warned its profit will fall about 8% in the current financial year, partly due to the cost of sprucing up its stores.

The company is forecasting a net profit of about $70 million dollars for the year excluding unusual items, dropping from $76 million last year.

The result comes on the back of falling sales.

The company says it will invest $430 million in the next five years into revamping and redeveloping its stores in the hope of turning around sales.

Shareholders at the company's annual general meeting in Auckland on Friday approved a rise of $100,000 in directors' fees, taking the fee up to $75,000 per director.

The Shareholders' Association supported the increase, noting that the board has been struggling to find young talent to be directors and that fees need to rise to attract fresh blood.