THE WAREHOUSE GROUP FIRST QUARTER: CONTINUED SALES MOMENTUM
Group Sales for Q1 of $655.9 million
The Warehouse (Red Sheds) Same Store Sales of 1.7%
Warehouse Stationery (Blue Sheds) Same Store Sales of 2.3%
Noel Leeming Same Store Sales of 10.5%
Auckland, 11 November 2016
The Board of The Warehouse Group (TWG) today reported first quarter ending 30
October 2016 retail sales of $655.91 million, up 3.9% from the same quarter
last year. All the Group''s retail brands delivered positive sales uplifts in
the quarter.
The Warehouse
The Warehouse (Red Sheds) reported sales for the first quarter (Q1) of $379.6
million, an increase of 1.0% or $3.6 million compared to the same quarter
last year. Same store sales increased 1.7% in the quarter. Gross Margins
have remained consistent with last year. The business has absorbed the
impacts of currency volatility, while continuing to invest in price for our
customers.
The major contributors of sales growth in Q1 have been the key categories of
Home, Leisure and Apparel. There have also been good performances across
Hardware & Automotive, Appliances, and new seasonal Homeware ranges. Our new
season designs, especially in our Basics range across Menswear, Womenswear
and Childrenswear, have been well received by customers.
Challenges continue in some categories. Softer sales in Entertainment, in
particular gaming, and the effects of a category "reset" in Stationery &
Craft during the quarter. Gardening has also seen softer sales, resulting
from the variability of weather through the quarter.
Sales through our various Digital channels continue to grow at a faster pace
than the market, which reflects positively on our continued focus on
improving the customer experience, culminating in the launch of our new
online platform at the end of the Quarter.
Commenting on the Red Sheds'' result Group Chief Executive Officer Nick
Grayston said "The business is focused on executing its strategy, focusing on
delivering a further step change in product quality, range, price and our
in-store experience. We continue to make good progress in this quarter on our
intent to deliver on that strategy in a market that is becoming increasingly
competitive".
Warehouse Stationery
Warehouse Stationery (Blue Sheds) reported sales for the first quarter of
$63.7 million, an increase of 1.4% or $0.9 million compared to the same
quarter last year. Same store sales increased 2.3% in the quarter.
"Another consistent first quarter for Blue Sheds, with growth across a number
of categories. During the quarter the Blue Sheds, alongside other brands
in the group, opened a new store in Tauranga Crossing."
Noel Leeming
Noel Leeming reported sales for the first quarter of $183.6 million, an
increase of 12.0% compared to the same quarter last year. Quarterly same
store sales increased 10.5%. Through an ongoing focus on people and services,
Noel Leeming continued its market share growth in an extremely competitive
appliances and technology market. The momentum from Q4 FY16 has carried into
Q1 FY17, with an underlying same store sales growth similar to Q1 FY16.
The continued success in this quarter is due to ongoing demand for products
across all categories. Cellular, Whiteware and Television all performed well
and our partnership with key suppliers ensured good stock availability during
key launches.
During the quarter, two new stores were opened in Takapuna and Tauranga
Crossing. The Gisborne store was relocated.
Torpedo7 Group
Torpedo7 Group reported sales for the first quarter of $37.8 million, up
11.5% compared to the same quarter last year.
Commenting on the Torpedo7 Group result, Mr Grayston said, "Torpedo7 Group
saw double digit sales growth on last year driven primarily by Torpedo7 and
1-day segments. The launch of the 1 day TV advertising campaign has been
successful in driving high levels of subscribers and new customers. Torpedo7
stores have had a positive quarter driven by strong early season Bike Sales.
Online
Group online sales (NZ) were $42.7M, up 22.1% compared to the same quarter
last year. Online sales as a % of total sales has grown to 6.7% with growth
coming from ''click & collect'', especially in Noel Leeming and The Warehouse.
TWG
In announcing the result, Mr. Grayston said, "The sales results for the first
quarter are important, however Q2 is where most of the sales and profit
performance for the half year occurs. We are focused on improving the
fundamentals of the business and still have a lot of work to do to achieve
the levels of profitability that we see are possible. The competitive
environment is tougher every year, and with the more international players
focusing on our domestic market, both physically and online, it is more
important for us to execute our plans well, to ensure that we are relevant,
competitive and profitable in the future".
The Annual Meeting of shareholders will take place on Friday 25th November
2016.
Note 1: Total Group sales is net of intercompany eliminations
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 93 Warehouse stores, 77 Noel Leeming
stores and 67 Warehouse Stationery stores in New Zealand plus several online
businesses. The Group had an annual turnover of $2.9 billion in FY16 and
employs over 12,000 people.
Contact details regarding this announcement:
Media
Nick Grayston, Group CEO, to be contacted via Gayle Theunissen on +64 9 489
8900 extn 96333 or +64 21 742 784
Investors and Analysts''
Mark Yeoman, Group CFO, to be contacted via Gayle Theunissen as above.
End CA:00292494 For:WHS Type:QUARTER Time:2016-11-11 08:40:19