WHS
11/01/2016 16:05
FORECAST
PRICE SENSITIVE
REL: 1605 HRS The Warehouse Group Limited
FORECAST: WHS: Trading Update
11 January 2016
Strong first half sets up expectations for year on year profit growth
The Board of The Warehouse Group today advised that the Adjusted Net Profit
After Tax (NPAT) for the Group for the first half year of Financial Year 2016
(FY16) ending on 31 January 2016 is expected to be between $43m and $45m,
which is 15%-21% higher than the same period last year.
Strong first half sales and profit performances have been recorded across The
Warehouse Group for all its retail brands (i.e. The Warehouse, Warehouse
Stationery, Noel Leeming and Torpedo7). The ongoing execution of the Group's
strategy has resulted in both sales and margin growth, with improved seasonal
management and strong Christmas trading. There has also been good cost
control as the business moves past the strategic cycle of investment catch-up
undertaken over the last four years. This retail profit growth has been
somewhat tempered at a Group level by the previously anticipated start-up
losses in the new financial services business, which will continue until it
establishes scale.
As he looks to hand over to Nick Grayston, outgoing Group CEO Mark Powell
said, "this strong performance continues the positive momentum developed in
the second half of last year, with the Group's strategic initiatives starting
to yield the profit growth required now that we've completed the necessary
investment catch-up."
Chairman Ted van Arkel said, "Full year profit guidance will be given at the
release of the half year results on 11 March 2016. We now expect that full
year profit to be up on last year, although not to the same extent as these
first half results, given potential risks around the impact of foreign
exchange movement on margin, the impact of the 53rd week in FY15, and that
financial services is in a loss-making establishment phase of its business."
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 92 Warehouse stores, 78 Noel Leeming
stores, 65 Warehouse Stationery stores and 12 Torpedo7 stores in New Zealand
and several online businesses. The company had turnover of $2.8 billion in
FY15 and employs over 12,000 people.
Contact details regarding this announcement: Media, Investors and Analysts
Mark Powell, Group CEO
To be contacted via Gayle Theunissen on +64 21 742 784
End CA:00276240 For:WHS Type:FORECAST Time:2016-01-11 16:05:47
