The Warehouse Group lifts third-quarter sales by 35 per cent, issues full-year guidance

The Warehouse expects its net profit for the full year to exceed $160m. Photo / File

The Warehouse Group boosted its sales in the third-quarter by 35 per cent as consumer demand for retail goods and e-commerce continued on.

The group, which owns retail chains The Warehouse, Warehouse Stationery, Noel Leeming, Torpedo7 and online marketplace TheMarket, said its sales for the three months to May 2 were $791.2 million, up 35 per cent on the same quarter last year or 10.8 per cent on FY19.

Given the Covid-caused disruptions of 2020, The Warehouse Group compared its latest quarterly figures to those in the 2019 financial year.

The retail group said that based on that comparison the red shed chain sales rose 6.1 per cent to $409.9m, driven mainly by strong category sales in toys, beauty & grooming and seasonal Easter confectionery, while its Noel Leeming sales rose 21.2 per cent to $263m.

Torpedo7 sales increased by 29.9 per cent to $35.4m in the period, driven by strong computer and whiteware sales, and Warehouse Stationery sales rose 0.4 per cent to $71.8m.

Its online sales grew 59.7 per cent and represented 10.8 per cent of total group sales in the quarter, up from 7.5 per cent in the third quarter of FY19.

Almost $2.6 billion rung through its tills in the year to May 2 - up 14.5 per cent on last year, and 10.4 per cent on FY19.

In a market update, the group said its sales growth was underpinned by significant growth in the Noel Leeming and Torpedo7 chains.

Group chief executive Nick Grayston said he was pleased with growth in the quarter, but warned that future trading outlooks remained uncertain.

"While we believe that there are positive consumer tailwinds, we believe that we are seeing strong continued benefit from many aspects of the transformation that has been underway for the last few years. However, the future remains uncertain and we are focused on ensuring that we take actions to manage changes in consumer spending," Grayston said in the NZX announcement this morning.

The group anticipates that its fourth-quarter sales will be similar to those of Q3 and has advised that it expects its adjusted NPAT for the full year to exceed $160m.

During the quarter, The Warehouse opened three new stores, including a combined The Warehouse and Warehouse Stationery in Ormiston, a Noel Leeming in Ormiston and a Torpedo7 store in Napier.

It also installed additional three electric vehicle chargers at its Kaitaia, Waipapa and Greymouth The Warehouse stores, taking its network to 28. Four electric trucks for home deliveries were launched, servicing distribution centres in Auckland, Hamilton, Tauranga and Christchurch, in the quarter.