The Warehouse signals drop in earnings, full-year underlying profit

The Warehouse Group has dropped its full-year earnings outlook with falling consumer demand and mild winter weather adding to the challenges facing the retailer.

“Retail across New Zealand is under pressure, and we are no exception,” interim chief executive John Journee said.

“Market conditions and cost of living pressures have continued to be challenging into our fourth quarter and we expect these conditions to continue through to our year end.”

  • Read more: What went wrong for the Warehouse?
  • Journee has taken the interim role after the departure of Nick Grayston, who had been brought in to turn the company’s fortunes around in 2016.

    He said the company was taking decisive action to address areas it could improve.

    “We are exercising tighter cost control and we have a laser focus on trading our core brands, The Warehouse, Warehouse Stationery and Noel Leeming.”

    The group expected full-year sales from continuing operations to be between 6 percent and 7 percent down on last year’s result.

    Underlying profit was expected to be in a range of $22 million to $30m, compared to $83.4m in the prior year, excluding the loss from discontinued operations and any potential restructuring costs.

    Continuing operations excluded Torpedo7, which it recently sold for $1, but included results from online channel which was to be closed on Monday after failure to find a buyer.

    In January, The Warehouse posted a nearly $24m first half loss.

    According to the news on Radio New Zealand

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