WHS
08/05/2015 08:30
QUARTER
PRICE SENSITIVE
REL: 0830 HRS The Warehouse Group Limited
QUARTER: WHS: WHS - Third Quarter Sales Update
WAREHOUSE GROUP THIRD QUARTER: SOLID TREND AFTER CHALLENGING FIRST HALF YEAR
Group Sales for Q3 of $635.1 million
The Warehouse (Red Sheds) Same Store Sales growth of 3.3%
Warehouse Stationery (Blue Sheds) Same Store Sales growth of 2.1%
Noel Leeming Same Store Sales growth of 0.9%
Auckland, 8th May 2015
The Board of The Warehouse Group (TWG) today reported Group sales for the
third quarter ending April 26th of $635.1m with solid same store sales
performances from each of the retail brands.
The Warehouse
The Warehouse (Red Sheds) reported sales for the third quarter of $381.1
million, an increase of 3.8% or $14.1 million compared to the same quarter
last year. Same store sales increased 3.3% in the quarter with the 'Red
Sheds' now recording 17 consecutive quarters of positive same store sales
growth.
The major drivers of sales growth in Q3 were strong performance through the
"Back to School" period including the first key trading period for SchoolTex
since it was acquired. Sales in the Home category continue to be strong with
positive sales growth also from the Apparel and Leisure categories. Gross
Margins improved on last year, driven largely by a strong contribution from
Apparel.
Also in the quarter, the Red Sheds continued to make good progress in
extending its digital/multi-channel capability with 'Click & Collect' (order
online, pick up in-store) and 'Endless Aisles' (extended range available in
store through online) now offered in all stores nationwide. Revenues from
digital channels continue to grow at higher rates than the market.
Commenting on The Warehouse (Red Sheds) result Group Chief Executive Officer
Mark Powell said "the third quarter saw a much improved performance on a
challenging first half, with solid sales growth and improved gross margin.
Our 'House of Bargains, Home of Essentials' strategy resonates with
customers, as we now focus on leveraging ongoing sales growth into profit
growth. We continue to lead the way in digital/multi-channel retailing, with
'Click & Collect' now representing 20% of online sales".
Warehouse Stationery
Warehouse Stationery (Blue Sheds) reported sales for the third quarter of
$70.2 million, an increase of 2.9% or $2.0 million compared to the same
quarter last year. Same store sales increased 2.1% in the quarter with the
'Blue Sheds' now recording 23 consecutive quarters of positive same store
sales growth.
Commenting on the Warehouse Stationery result Group Chief Executive Officer
Mark Powell said "Warehouse Stationery is a great business and its 'work,
study, create, connect' strategy has continued to deliver. Third quarter
sales growth was driven by good 'Back to School' and 'Tax Time' campaigns
which saw a strong lift in transaction count year on year."
Noel Leeming
Noel Leeming reported sales for the third quarter of $154.8 million, an
increase of 5.4% compared to the same quarter last year. Quarterly same
store sales increased 0.9%.
Commenting on the Noel Leeming result Group Chief Executive Officer Mark
Powell said "The positive impact of the first half rebrand and new stores
drove the sales increase. After a tough first half year, where the market
cycled through the digital switchover in the previous year, Noel Leeming has
rebounded well in the third quarter and continues to gain market share. Its
strategy of being the 'passionate experts' in this sector is providing a
competitive advantage"
Torpedo7 Group
Torpedo7 Group reported sales for the third quarter of $30.6 million up 8.5%
compared to the same quarter last year.
Commenting on the Torpedo7 Group result Group Chief Executive Officer Mark
Powell said "Torpedo7 Group is still in its early stages of development and
continues to work on the strategic direction of becoming NZ's leading
outdoor, adventure sport omni-channel retailer. This quarter saw an overall
growth for the Group with standout performances in 1 Day and Torpedo7 stores,
balanced by tougher sales into the Australian market."
The Warehouse Group
In announcing the result, Group CEO Mark Powell said "The third quarter has
delivered positive sales results across all our retail businesses in the
quarter. While this is a solid performance, particularly on the back of a
difficult first half trading period, the retail environment continues to be
highly competitive, and our focus remains on leveraging year-on-year profit
growth for the second half year". These third quarter results are in-line
with expectations and consequently our full year profit guidance remains the
same as that given during the presentation of the first half year result.
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 92 Warehouse stores, 78 Noel Leeming
stores, 65 Warehouse Stationery stores 11 Torpedo7 stores and 2 Number 1
Fitness stores in New Zealand and several online businesses. The company had
turnover of $2.6 billion in FY14 and employs over 12,000 people.
Contact details regarding this announcement:
Investors, Analysts and Media
Mark Powell, Group CEO, to be contacted via Gayle Theunissen on +64 9 489
8900 extn 96333 or +64 21 742 784
End CA:00264079 For:WHS Type:QUARTER Time:2015-05-08 08:31:05
