KEY POINTS:
Takeover target Warehouse Group expects first-half profit to be little changed due to flat sales in the lead up to the key Christmas period.
Net profit after tax for the half year ending January 27 will likely be similar to the $60.1 million recorded in the year ago period, the discount retailer said in a statement to the New Zealand stock exchange today.
"Sales performance for the second quarter to date highlighted a patchy and unpredictable retail environment with the Christmas rush arriving very late in December," Retailer's Association spokesman Barry Hellberg said.
Apparel sales continued to be the "stand-out" area for the retailer, while a higher degree of competition made appliances and consumer electronics sales "difficult."
Group net profit after tax for the first half of the financial year ending January 27 was expected to be similar to the $60.1 million in the corresponding period last year.
The latest results would include a release of warranty provisions of up to $5 million associated with the sale of The Warehouse Australia in 2005, which lapsed during the period.
The company said it remained cautious in its outlook and believed retail spending patterns would be unpredictable for some time.
An update to previous guidance on full year profit expectations would be given at the time of the 2008 interim financial results release on March 14.
Warehouse shares fell 3 cents to $5.77 by 11.35 this morning in local trading.
