The Warehouse Group (WHS) has signaled expected net profit after tax for the year ending on July 27 has been cut from $70 million to between $62 million and $66 million.

In a statement to the NZX, group chief executive Mark Powell said the downgrade came despite same-store sales improving 3.1% in the January quarter and total sales for the period increasing 4.2%.

“I am pleased with overall sales growth, but market conditions have resulted in pressure being brought to bear on margins in some areas. This has been particularly evident in the Apparel category, which in the first half has offset positive underlying growth in a number of other key categories,” he said.

Mr Powell said group net profit expectations of $80 million for the year remained unchanged.

The Warehouse Group half-year results will be announced on March 9.

Shares in the retailer were trading at $2.95 at the close of trading yesterday.