The Warehouse Group released its half-year financial results for the period ending January 26.
In the first half of 2024, The Warehouse Group’s revenue fell to $1.6 billion, accompanied by a 1.1% decrease in same-store sales during the same period.
The group’s net profit after tax was $11.8 million, marking an improvement from the $23.7 million loss reported in the first half of the previous year.
Earnings before interest and tax (EBIT) decreased to $38.8 million, down from $62.8 million in the same period last year. Additionally, there’s a projected EBIT loss of approximately $14 million for the second half.
“These are our first results under our new strategy, and they reflect a business in transition. We’re resetting the focus, addressing legacy issues and embedding our brand-led structure and approach,” The Warehouse Group interim chief executive John Journee said.
“While it will take time to fully work through, the early signs are promising.”
“Group market share held relatively steady in the six months at 15.5% of NZ core retail spend. That is no small feat, and it’s a testament to the hard work of our teams across the country,” he added.
Chair Dame Joan Withers also commented, “We are starting to see meaningful progress.”
She noted that the group has been fortifying its core categories, enhancing efficiency, and positioning the business for future success. She added, “Retail is cyclical, and while we believe we’re at the bottom of the cycle now, our disciplined approach, positive cash position and liquidity give us confidence that we will emerge stronger.”
The Warehouse Group’s share price is down 45.3% over the past twelve months.