Warehouse Group, which will quit its secondary ASX listing from July, lifted sales 3.3 per cent 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 $381.5 million in the same period a year earlier, the company said in a statement. The Red Sheds boosted revenue 3.5 per cent to $338.4 million, while its stationery outlets increased sales 2.4 per cent to $55.8 million.

"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 per cent in March and 9.5 per cent in February from the same months a year earlier.


The biggest listed retailer increased nine-month sales 3.3 per cent 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 $62 million and $66 million.

The shares were unchanged $2.61 in trading yesterday, and have shed 13 per cent this year. The stock is rated 'hold' based on the consensus of eight analysts in a Reuters survey.