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Warehouse lifts sales in third quarter

NZN 12/05/2016 Tina Morrison

Warehouse Group has lifted third-quarter sales 5.5 per cent and says it's on track to meet its forecast annual profit.

Sales rose to to $672.2 million after the Warehouse spent hundreds of millions of dollars overhauling its outlets and buying new businesses to drive growth in the past few years.

It retained its forecast for annual profit excluding one-time items of $61m-$64m, which would be up between 7-to-12 per cent on last year.

"The third-quarter results are in-line with expectations and consequently our full year profit guidance remains the same," chief executive Nick Grayston said.

"Risk remains in some seasonal stock lines as we continue to experience a warmer autumn than forecast, which may translate through to weaker demand for some winter seasonal ranges."

In the company's largest unit, its 93 Warehouse stores lifted sales 2.2 per cent to $389.3m.

It said sales growth was strongest in leisure through both extended summer seasonal sales and continuity products in hardware and automotive, along with continued growth in home and entertainment.

Its Noel Leeming appliance and technology stores increased sales 17 per cent to $180.6m after it consolidated three clearance stores into one site at Mt Wellington reducing store numbers to 75.

Its Warehouse Stationery 'blue shed' stores increased sales 3.3 per cent to $72.5m wile its Torpedo7 sports chain grew sales 14 per cent to $34.8m.

Warehouse shares last traded at $2.74 and have advanced 2.6 per cent this year.

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