WHS
08/05/2014 08:30
QUARTER
REL: 0830 HRS The Warehouse Group Limited
QUARTER: WHS: WHS - Third Quarter Sales Update
THE RESHAPED WAREHOUSE GROUP REPORTS CONTINUED GROWTH
Group Sales for Q3 of $604.8 million
The Warehouse (Red Sheds) Same Store Sales up 3.0%
Warehouse Stationery (Blue Sheds) Same Store Sales up 6.1%
Noel Leeming Same Store Sales up 10.9%
Auckland, 8th May 2014
Group Result
The Board of The Warehouse Group (TW Group) today reported Group sales for
the third quarter (Q3) ending April 27th of $604.8 million with solid sales
performances from each retail brand.
The Warehouse (Red Sheds)
The Warehouse reported sales for the third quarter of $367.0 million, an
increase of 3.2% or $11.4 million compared to the same quarter last year.
Same store sales increased 3.0% in the quarter with the 'Red Sheds' now
recording 13 consecutive quarters of positive same store sales.
The major drivers of sales growth in Q3 have been from strong sales growth in
the Apparel, Baby, Petcare, Hardware, Gaming, Jewellery, Consumer
Electronics, Appliances & Whiteware and confectionery categories. New
initiatives in the quarter, such as the introduction of the Schooltex brand
of school uniforms have added to the Red Sheds range of products, bringing
new customers into store, which has supported growth in both transaction
count and basket size.
Apparel sales in Q3 showed good growth compared to the same period a year
ago. However, the widely reported relatively warm seasonal weather in this
period has resulted in apparel and heating sales in Q3 being slightly below
planned levels. Red Sheds Gross Margins in Q3 were slightly higher than the
same period last year. Commenting on seasonal trade Group Chief Executive
Officer Mark Powell said that "while a late start to winter has had some
impact on our apparel sales, it is pleasing to still see good growth in
apparel compared to last year, suggesting that this years' winter ranges will
trade well as the cooler weather kicks in."
Year To Date (YTD), this means the Red Sheds reported sales are $1,287.1
million, an increase of 5.3% or $64.9 million compared to last year YTD.
Same store sales have increased 3.8% YTD.
Mr Powell said "The Red Sheds continues to make progress as New Zealand's
'House of Bargains and Home of Essentials', with 13 quarters of same store
sales growth and continued increases in the number of customers shopping in
our stores and online. This all supports our strategy of ongoing investment
in our stores, our people and our products, to deliver improvements for our
customers. The sales and transactions increases tell us that they are
noticing the difference."
Warehouse Stationery (Blue Sheds)
Warehouse Stationery reported sales for the third quarter of $68.2 million,
an increase of 8.1% or $5.1 million compared to the same quarter last year.
Same store sales increased 6.1% in the quarter with the 'Blue Sheds' now
recording 19 consecutive quarters of positive same store sales.
Q3 YTD the Blue Sheds reported sales of $189.7 million, an increase of 8.4%
or $14.7 million compared to last year. Same store sales have increased 5.4%
year to date.
Commenting on the Warehouse Stationery result Group Chief Executive Officer
Mark Powell said "The focus on the 'Work, Study, Create & Connect' strategy
is continuing to deliver in Warehouse Stationery. This will continue to be
supported with the introduction of new innovative products, such as the
'iColour' and 'Inspire' fashion stationery brands" and new services, such as
passport photo's through New Zealand's only truly national print and copy
network."
Noel Leeming
Noel Leeming reported sales for the third quarter of $146.9 million, an
increase of 10.4% compared to the same quarter last year. Quarterly same
store sales increased 10.9%. The major drivers of sales growth in Q3 have
been the continuing strong sales performance in all major product categories.
Q3 YTD the Noel Leeming reported sales of $475.7 million, same store sales
have increased 13.5% year to date .
Commenting on the Noel Leeming result Group Chief Executive Officer Mark
Powell said "We are pleased with the sales growth being delivered by Noel
Leeming and we will continue to invest over the medium term to ensure we
remain NZ's leading Home Appliance, Entertainment & Technology retailer."
Torpedo7 Group & Multichannel
Torpedo7 Group reported sales for the third quarter of $22.7 million. This is
up from a reported $5.3 million last year, which only represented the first
month's sales of Torpedo7 following its acquisition. Proforma comparative
sales, restated on a like for like quarterly basis, and including the
subsequent acquisitions of Number 1 Fitness, Shotgun and R&R Sport, increased
12.6% or $3.2 million compared to last year .
"We are investing in Torpedo7 to create a leading multichannel outdoor,
adventure sport retailer. We continue to be excited by the growth
opportunities we see in this area of our business" said Mr Powell.
The Warehouse Group
In announcing the result, The Warehouse Group Chairman Ted van Arkel said
"The Group strategy continued to develop in this last quarter. The
announcement of our financial services strategy and associated capital raise
will help support the growth momentum we are seeing. The investment in the
core Red Sheds business is being noticed by our customers and Warehouse
Stationery, Noel Leeming and Torpedo 7 are all showing good progress. The
significant reshaping of the Group has positioned us well for a period of
consolidation, where the emphasis will be more on leveraging returns from the
base we have built. The Board is confident this strategic focus will deliver
long term results for our shareholders in a retail environment that is
continuing to evolve as customers' buying habits change."
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 91 Warehouse stores, 76 Noel Leeming
stores and 64 Warehouse Stationery stores in New Zealand and several online
businesses. The company had turnover of $2.2 billion in FY13 and employs
over 10,000 people.
Contact details regarding this announcement:
Mark Powell
Group Chief Executive Officer to be contacted
via Gayle Theunissen on
+64 9 489 8900 X96333 or +64 21 742 784
End CA:00250198 For:WHS Type:QUARTER Time:2014-05-08 08:30:15
