Interim chief executive John Journee says that have signalled for some time that FY25 would be tough. Photo: RNZ / Nate McKinnon
Retailer The Warehouse has returned to profit despite a fall in sales and reduced margins.
"We've signalled for some time that FY25 would be tough and that remains the case," interim chief executive John Journee said.
Key numbers for the six months ended January 26 compared with a year ago:
- Net profit $11.8m vs $27.7m loss
- Revenue $1.61b vs $1.63b
- Underlying profit $19.5m vs $43.0m
- Gross margin 32.5 percent vs 34.3 percent
- Interim dividend nil vs 5 cents per share
"These are our first results under our new strategy, and they reflect a business in transition," Journee said.
"We're resetting the focus, addressing legacy issues and embedding our brand-led structure and approach. While it will take time to fully work through, the early signs are promising."
Red Sheds reported sales fell 2.2 percent of $944.7m, with underlying profit down two thirds (68 percent) to $12.5m from $38.8m.
Warehouse Stationery sales were down 6.8 percent to $109.8m, with underlying profit down 68 percent to $2.4 million.
Noel Leeming sales were up 0.8 percent to $548.9m with underlying profit down 40 percent to $8.5m.
Journee said investments were focussed on improving stores to be brighter and more inviting to customers.
Property initiatives include a relocated Noel Leeming Blenheim store in February and a new Warehouse Stationery stand-alone store set to open in central Wellington in the second half.
"A year ago, we were on the back foot but today, we are in far better shape to respond to the uncertainty ahead. We are not waiting on the economy to turn around its fortunes, our job is to accelerate the momentum we are building, scaling our wins and ensuring we execute consistently," he said.
Chair Dame Joan Withers said the board was making good progress in its search for a permanent chief executive, with a strong pool of candidates under consideration.
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