James Pascoe, the retail group owned by David and Anne Norman, has added to its holding in Warehouse Group by buying on market this week, taking advantage of shares trading near their lows for the year.
James Pascoe acquired 730,000 shares for a total of $2.26 million yesterday, implying a price of about $3.10 a share. The stock traded at $3.09 on the NZX today. The latest purchase lifts Pascoe's holding to 6.3 percent from the 5.15 percent it disclosed in June, when it first emerged as a substantial shareholder.
Warehouse shares were as high as $3.75 at the start of the year and the Normans may be betting on an improved performance in 2015. Last month the Auckland-based retailer posted an 18 percent drop in annual profit, while saying investments should start showing up in earnings growth in the current financial year. The shares are rated a 'sell' based on the consensus of analysts polled by Reuters with a median price target of $3.05.
The Normans' retail empire includes department store chain Farmers Trading Co, the Whitcoulls bookstores, Pascoes the Jewellers, Stewart Dawson and Goldman jewellery retailers, and Prouds the Jewellers, Angus & Coote and Goldmark jewellery chains in Australia.
