The Warehouse Group 2025 results: Net loss narrows to $2.8m

The Warehouse Group has posted its financial results for the year to August 3, showing a slight lift in overall revenue and a much smaller net loss compared to the year before.

The group reported total revenue of $3.09 billion, up 1.6% from $3.04 billion in 2024.

Breaking it down by store, The Warehouse reported revenue of $1.8b, up 1.4%, Warehouse Stationery reported revenue of $226 million, down 2.5%, but Noel Leeming was the standout with its revenue growing 3.3% to $1b.

Gross margins remain under pressure, reflecting the wider retail industry trend, but better than expected, falling from 33.6% to 32.2% across the group.

The group reported a net loss after tax of $2.76m for the year, a welcome improvement on its $54.2m loss last year.

Earnings before interest and tax, or operating profit, was $1.3m - down from $28.9m in 2024 - but within the company’s forecast range.

While sales were positive, a 140 basis point decrease in Group gross profit margin significantly impacted operating profit, the company said in its market announcement.

Chief executive Mark Stirton said the group was sharpening its focus on “disciplined execution” to lift performance.

“In FY25, we reset how we operate. We simplified our organisational structure and returned to a brand-led model with retail ways of working. We also reset our pricing, improved our product range, and controlled costs and capital expenditure.

“Customers are responding well to our new ranges and pricing, with higher conversion and more units sold, especially in home, apparel, toys, and health and beauty. Stronger second-half sales show that when we get the offer right, customers respond quickly.”

Chair Dame Joan Withers echoed the sentiment, and said 2025 was a year of decisive change and deployment of the brand-led strategy outlined last year.

“Economic and retail conditions in New Zealand remain extremely challenging. Unemployment and inflation remain comparatively high, and consumer confidence is down, putting further pressure on discretionary spending and intensifying retail competition.

“Against that backdrop, The Warehouse Group held its top line, improved sales in the second half, and made meaningful progress on cost control. While profitability is not where we want it to be, the decisions made this year have laid the foundation for improved margin and bottom line performance as the economic recovery unfolds.”

More to come...

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.