WELLINGTON - The Warehouse is reporting Christmas trading was below expectations, although still its best for three years.
The company said today that group net profit after tax (NPAT) for continuing businesses for the first half was forecast to be similar to the $59.1 million achieved in the
corresponding period a year earlier.
But first half NPAT would be affected by lower contributions from property disposals and joint venture activities and additional employee compensation costs.
Group ceo Ian Morrice said the Christmas rush arrived late in December and demand remained patchy with key seasonal categories such as apparel continuing to be very difficult.
"Our trading result over the total Christmas period was our best for three years but still below our own expectations."
Same store sales for The Warehouse during November and December were 2.3 per cent ahead of the same period last year, with total sales for the first half of the financial year ended January 28 expected to be 2.9 per cent ahead of the same period last year, The Warehouse said.
Operating margins for the first half were expected to be maintained at levels similar to the same period last year.
Earlier this month several retailers told NZPA trading was strong, with chilly temperatures appearing to have driven shoppers into malls.
Ron Wheeler, the centre manager for Porirua's North City Centre, said trading was "a lot busier than last year".
Jo Allen, marketing manager at Auckland's Sylvia Park shopping mall, said business had been "manic," with the new Mt Wellington centre attracting tourists as well as shoppers.
Even the BBQ Factory was doing all right.
"For the last three months [the weather] would have affected the timing of some of our business, but the overall level of business is one we're happy with," northern regional manager Andrew Kidd said.
Eft-pos data company Paymark, which accounts for 80 per cent of electronic transactions in New Zealand, said transactions for December were up an average 7 per cent.
Warehouse shares were down 5c to $4.82 in early trade today on thin volumes.
- NZPA
