The Warehouse warns of profit downgrade on weak sales
Sales at The Warehouse for the past two months dropped below year before levels, with the retailer expecting a fall in first half profit.
Sales at The Warehouse for the past two months dropped below year before levels, with the retailer expecting a fall in first half profit.
The company today said it expected adjusted group net profit for the first half of the financial year ending January 30 to be between $51 million and $54 million compared to $57 million for the same period last year.
Total sales for the two months ended January 2 were down 2.7 percent compared to the same period last year. Same store sales were down 3.8 percent.
Warehouse Stationery sales were flat on last year for the two month trading period with same store sales up 0.7 percent.
Group chief executive Ian Morrice said sales in general had been very soft over the key seasonal trading period.
"We expected the sector to remain difficult and highly promotionally driven over the course of our 2011 financial year but New Zealand consumers clearly remain even more focused than we predicted on strengthening household balance sheets," Mr Morrice said.
"Whilst apparel, footwear and other seasonal categories traded in line with last year, spending on consumer electronics, gaming, CDs and DVDs was well down."
The Warehouse Group half year results will be published on March 11.
Shares in The Warehouse were down 6c to $3.44 in late morning trading.
NZPA and NBR staff
Wed, 05 Jan 2011
Wed, 05 Jan 2011
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The Warehouse warns of profit downgrade on weak sales
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