KEY POINTS:
The Warehouse Group has reported third quarter sales, for the period to April 29, up 6.7 per cent on the same period a year ago to $412.3 million.
Group sales for the financial year to date of $1.36 billion were 3.5 per cent ahead of the same period last year, the company said today.
The Warehouse NZ sales at $350 million were up 7 per cent from a year ago, while year to date sales were up by 3.6 per cent. Same store sales for the quarter were up by 5.8 per cent and up 2.3 per cent year to date.
"We have seen strong consumer demand against a soft comparative period last year, but sales mix has meant that much of the growth has come from lower margin categories, such as entertainment, Easter and health and beauty," chief executive Ian Morrice said.
"The late summer meant that sales in seasonal categories were strong in this quarter, later in the season than last year, but at reduced retail prices."
Warehouse Stationery had third quarter sales at $62.3 million up 4.9 per cent on the comparable period, and year to date sales at $163.6 million were 2.6 per cent ahead of last year.
Same store sales for the quarter were up by 7.2 per cent and 3.9 per cent up for the year to date.
The sales increase in the third quarter reflected the significant level of clearance activity necessary to reduce inventories, the company said.
Warehouse Stationery continued to experience disruption associated with the introduction of a new merchandise system in the second quarter.
Mr Morrice said the market had remained highly competitive during the period, but the group remained on track for full year earnings advised to the market in March.
Then he had said the group was comfortable with the market consensus for its full year profit of around $96m.
Shares in The Warehouse closed at $6.75 yesterday, having ranged between $7.32 and $3.60 in the past year.
Supermarket giants Woolworths and Foodstuffs have both sought permission from the Commerce Commission to buy The Warehouse, of which both already own 10 per cent.
A decision was initially due from the commission in late January, but that has since been extended, with the most recent due date being May 25.
Earlier this week, retailers Hallenstein Glasson and Briscoe Group both reported a rise in April quarter sales.
Hallenstein, which owns clothing chains Hallensteins and Glassons, said sales were 4 per cent higher than a year ago, with the onset of cooler weather boosting sales of winter clothing in New Zealand and Australia.
In March, Hallenstein blamed cool summer weather for an 8.6 per cent fall in half year net profit after tax to $9.97 million.
Homeware chain Briscoes said its first quarter sales rose 17 per cent, but profit was flat because of margin pressure as the company increased advertising spending to generate sales, mainly in sporting goods.
On a same store basis, the group's sales for the quarter were 7 per cent ahead. Same store homeware sales lifted 8.7 per cent for the quarter, with sporting goods 3.5 per cent ahead.
For the year to January 28, Briscoes reported a 5.2 per cent rise in net profit to $26.1 million, with most of the growth in its homeware chain.
- NZPA
