The group will pay out a final dividend of 10 cents per share, taking full-year dividends to 20 cents per share.
Sales at The Warehouse division decreased 4.3 per cent to $1.7b in the year, while sales at Warehouse Stationery decreased 9.1 per cent to $249.7m.
Noel Leeming's golden run halted, with the electronics retailer's sales decreasing 2.8 per cent to $1.1b.
Meanwhile, sales at outdoor equipment retailer Torpedo7 bucked the trend, increasing by 8.1 per cent to $171.5m.
Online marketplace TheMarket increased average customer spend by 14 per cent and delivered $110m in gross merchandise value.
Group online sales in the year increased 39.8 per cent to $503m and now account for 15.3 per cent of total sales.
Warehouse Group chief executive Nick Grayston said the result was pleasing despite the first half of the year being "one of the most disrupted periods since the start of the Covid-19 pandemic".
"While 2022 has been another year disrupted by Covid-19 lockdowns, we are pleased with this solid performance across the group and our momentum overall as we continue to build a world class retail ecosystem.
"I would like to acknowledge all of our team members, who once again adapted quickly to the changing and challenging times so we could be there for our customers," Grayston said in the market update.
"The first half was the most challenging with a sales decline of 4.3 per cent year on year. The second half saw disruptions starting to ease, supply chains and networks becoming easier to navigate and our customers return to stores, albeit with continued restrictions of 'orange' under the traffic light system."
Grayston said across all brands, click and collect sales increased almost 55 per cent compared to the prior year, making up nearly half of all group online sales.
The cost of doing business for the group increased by $35.2m compared with the year, with additional costs including the SaaS computing upgrade, increased advertising in digital media and on TheMarket.com and Covid-19 non-labour costs.
Focus on groceries
Groceries have been a focus for the group through the FY22 year, providing low-cost options of staple items such as bread, cheese and milk.
Grayston said the group was encouraged by customer feedback it had received over the past six months and was hopeful the Government's move to make the grocery sector fairer would enable the group to grow its offering.
"Despite food price increases, we have held our prices on key essentials like butter, milk and bread as we committed to in March 2022 and our customers have benefited from this. Over the last five months, we estimate we've saved Kiwi families $2.7 million by focusing on making a good breakfast of bread, butter, milk, Weet-Bix and coffee affordable.
"Grocery, pantry, health & beauty, laundry and pet care are all growing categories for us and are now available in all of our existing 89 The Warehouse stores. Looking ahead, we will continue to expand our value range and offer grocery essentials at NZ's best prices.
"We continue to be hopeful that the Government's ongoing actions to make grocery retailing a more level playing field, and access to equitable prices, will enable us to do more. Equal access to supply and distribution continues to be a challenge that is not yet solved."
Warehouse shares are trading at around $3.44 cents per share, down from a recent high of $3.75 earlier this month.
