Warehouse 3Q sales rise 3.3% after gains for most goods
Third quarter sales rise 3.3% for the Red Sheds, with gains across most goods, although apparel still lags.
BUSINESSDESK: Warehouse Group, which will quit its secondary ASX listing from July, lifted sales 3.3% in the third quarter as it attracted more demand across all retail goods except clothing.
Sales rose to $394.2 million in the three months ended April 29 from $381.5m in the same period a year earlier, the company said.
The Red Sheds boosted revenue 3.5% to $338.4m, while its stationery outlets increased sales 2.4% to $55.8m.
"All major merchandise departments other than apparel performed ahead of last year at both a sales and gross profit level," chief executive Mark Powell said.
"Apparel continued to be impacted in February and March by the challenges of exiting a mild summer."
Warehouse has missed out on increased spending on clothing and footwear, with apparel spending on electronic cards rising 12% in March and 9.5% in February from the same months a year earlier.
The biggest listed retailer increased nine-month sales 3.3% to $1.33 billion.
Chairman Graham Evans said the company's long-term strategy is "showing encouraging progress" but cost pressures and compensating for previous underinvestment means "this will take time to translate into profit growth".
The company retained full-year profit guidance of between $62m and $66m.
The shares were unchanged $2.61 in trading yesterday, and have shed 13% this year.
The stock is rated "hold" based on the consensus of eight analysts in a Reuters survey.
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Warehouse 3Q sales rise 3.3% after gains for most goods
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