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Restructuring Warehouse reports solid Q3 sales

08 May 2014

The Warehouse has today 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.

Announced via the New Zealand stock exchange, 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 says 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 while same store sales have increased 3.8% YTD.

“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,” Powell adds.

“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.”

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 .

“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,” Powell adds.

The Warehouse Group...

In announcing the result, The Warehouse Group Chairman Ted van Arkel adds; “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.”