WHS
20/06/2014 08:30
FORECAST
REL: 0830 HRS The Warehouse Group Limited
FORECAST: WHS: FY14 Profit Guidance Update
Auckland, 20th June 2014
The Warehouse Group (TW Group) Revises Guidance in Light of Seasonal Trading
Conditions
TW Group, consisting of The Warehouse (Red Sheds), Warehouse Stationery, Noel
Leeming Group, Torpedo7 Group and Financial Services divisions, has revised
its Full Year 2014 (FY14) guidance for the year ending July 27th . While
Noel Leeming, Warehouse Stationery and Financial Services are all performing
in line with planned profit expectations, this is not the case with the Red
Sheds and Torpedo7. As a result, TW Group has revised its guidance given in
March 2014 of Adjusted Group Net Profit After Tax (adjusted NPAT) of $67-$71
million down to $59-$62 million.
The Red Sheds have been impacted by unusual and sustained warm temperatures
this autumn and winter. As a result, while sales in the Red Sheds are still
above last year, sales of seasonal apparel and home products are below plan
and are increasingly having to be sold at decreased margins to maintain
seasonal sell-through and avoid end-of-season overstocks. Over the last
three weeks there has been a material deterioration in sales and margin
versus plan in the Red Sheds and it is likely the remaining winter season
will see discounted trading in the market, with limited opportunity for full
margin sales. These market conditions add further unpredictability to the
remaining June and July trading environment.
Torpedo7 is at an early stage of its strategic journey to be a leading
multichannel outdoor, adventure sport business. The integration of R&R Sport,
No.1 Fitness and Shotgun.co.nz has been well managed, but this integration
effort has resulted in sales not yet reaching planned short term levels.
Chairman Ted van Arkel said that "the revised guidance is representative of a
particularly difficult seasonal trading environment. However, the reshaped
TW Group has developed a stronger base and significant opportunities for
growth. In the next year the focus will be on consolidating the changes made
and leveraging profitable growth."
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:
Media, Investors and Analysts
Mark Powell, Group CEO, to be contacted via
Gayle Theunissen on +649 489 8900 x96333 or Mobile:6421 742 784
End CA:00251819 For:WHS Type:FORECAST Time:2014-06-20 08:30:42
