Ann: QUARTER: WHS: First Quarter Sales Update

• Release Date: 05/11/12 10:30
• Summary: QUARTER: WHS: First Quarter Sales Update
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WHS
05/11/2012 08:30
QUARTER

REL: 0830 HRS The Warehouse Group Limited

QUARTER: WHS: First Quarter Sales Update

THE WAREHOUSE GROUP LIMITED

First Quarter Sales Update

- The Warehouse Group total sales were $377.3M, up 1.9%
- The Warehouse (Red Sheds) total sales were $325.7M, up 0.8%
- Warehouse Stationery (Blue Sheds) total sales were up 9.1%

Auckland, 5 November 2012 - The Directors of The Warehouse Group Limited
reported Group sales for the first quarter ended 28 October 2012 of $377.3
million, up 1.9% on the corresponding quarter last year.

The Warehouse first quarter sales were up 0.8% to $325.7 million compared
with the corresponding period last year.  Same store sales were flat at 0.0%.
 Three main factors contributed to sales performance in the quarter; double
digit growth in consumer electronics, jewellery, housewares and pet products,
offset by the anticipated decline in sales compared to last year as a result
of the Rugby World Cup and our decision to remove from sale some home
appliance and whiteware products with high return rates.  The introduction
late in Q1 and the further expansion of the Kensington brand of home
appliances, along with sourcing alternative whiteware products will enable us
to offer a full range of products in these categories by the second half.

Chief Executive, Mark Powell said "I am pleased that in a quarter which we
knew would have mixed performance in different categories we continued to
deliver strong growth in key areas.  While same store sales in September and
October were lower than the prior corresponding months, largely due to the
cycling against the Rugby World Cup, The Warehouse sales performance in
August was very strong and we are set up very well to enter the important
second quarter.  I am confident that our decision to remove some of our home
appliance and whiteware products from sale, while having a short term impact,
is clear evidence of The Warehouse putting the customer first which will
benefit overall brand perception in the long term."

Online channels continued their strong growth, up 138%, assisted by the
successful launch in August of the Red Alert daily sales site. At the end of
October "Your Warehouse" was launched which allows us to offer targeted
promotions to match the specific interests of our customers through our
website, providing us with another avenue to directly engage with our
customers.

Continuing our focus on improving the store experience, two new The Warehouse
stores were opened in the quarter, Royal Oak and Silverdale.  In addition,
three stores (Rotorua, Palmerston North and Whangarei) were reopened
following internal refits and six stores underwent external modernisation.

Warehouse Stationery experienced strong first quarter sales, up 9.1% to $51.6
million and same store sales up 3.7% on the corresponding period last year
with significant contributions from technology and communications products.
Three new Warehouse Stationery stores were opened in the quarter, Warkworth,
Royal Oak and Silverdale.

Chairman Graham Evans said "while it was a mixed quarter with some strong
category performances offset by a tough prior corresponding period the Board
is confident that the Group's strategy is delivering value to shareholders
and will continue to do so".

Second quarter sales will be released with the 2013 interim financial results
on 8 March 2013.

ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 91 Warehouse stores and 59 Warehouse
Stationery stores in New Zealand. The company has an annual turnover of
NZ$1.732 billion and employs over 9,000 people.

Investors and Analysts
Stephen Small - Chief Financial Officer
Telephone: +64 21 714 159

Media
Mark Powell, Group CEO to be contacted via
Gayle Theunissen on +64 94898900 X 96333
End CA:00229294 For:WHS    Type:QUARTER    Time:2012-11-05 08:30:14