The Warehouse Group swings to $11.8m first-half profit - but revenue falls, forecasts second-half ebit loss

The Warehouse Group has revealed its half-year results for the six months ended January 26. Photo / Supplied

The Warehouse Group reported its half-year results for the six months ended January 26, revealing a revenue drop of 1.6% from the first half of 2024.

The group’s revenue declined to $1.6 billion in the first half of 2024, with same-store sales down 1.1% in the same period.

The group’s net profit after tax was $11.8m, up from the first half of last year’s $23.7m loss.

Earnings before interest and tax (ebit) also fell to $38.8m, down from $62.8m in the prior corresponding period.

The retailer forecast a second-half ebit loss of about $14m.

It expects the economy to recover towards the end of calendar-year 2025 as lower inflation and interest rates take effect.

“We aren’t relying on an economic recovery to fix our business. The turnaround is in our hands,” an investor presentation said.

Looking at the segments, The Warehouse’s total revenue fell to $944.7m (down 2.2%).

Warehouse Stationery’s total revenue fell to $109.8m (down 6.8%).

Noel Leeming’s total revenue grew to $548.9m (up 0.8%).

The Warehouse Group interim chief executive John Journee said its turnaround plan was delivering improvements, but market conditions and overcoming legacy challenges continued to impact progress.

“These are our first results under our new strategy and they reflect a business in transition. We’re resetting the focus, addressing legacy issues and embedding our brand-led structure and approach. While it will take time to fully work through, the early signs are promising,” Journee said.

“Group market share held relatively steady in the six months at 15.5% of NZ Core Retail spend. That is no small feat and it’s a testament to the hard work of our teams across the country.”

Shares closed on Thursday at 82¢.

The stock is down 45.3% over the past year.

Tom Raynel is a multimedia business journalist for the Herald covering small business, retail and tourism.