The Warehouse half year results:
Sales- $923m, down 2.9pc
Profit - $49m, down 23.8pc
Dividend - 15.5 cents per share: unchanged
The Warehouse has unveiled half year profits of $49 million, down 23.8 per cent on the $64.3m recorded in the same period last year.
Same store sales are down 2 per cent for the six months and 1.8 per cent for the quarter.
Its earnings before interest and taxation were also down sharply for the latest half-year - 19.2 per cent to $74.5m - because of a $10.6m cost from the chain's exit from fresh food sales and its Cellars operations, and changes to warranty provisions.
The profit announcement covers the six months to January 25, 2009.
But the company said it regarded a 1.1 per cent lift in operating profit, to $84.2m a "solid" result. Broken down into segments, the operating profits were up 2.3 per cent to $81.2m for The Warehouse shops, down 51.8 per cent for Warehouse Stationery to $1.3m, and up 34.9 per cent to $1.7m for other group operations. The results were based on sales for the half year of $923.5m, down 2.9 per cent on the same period in 2008 ($950.6m).
Its operating margin was bumped up by 30 basis point to 9.1 per cent, from 8.8 per cent.
The Warehouse said it was focused on "competing vigorously" across all categories while maintaining gross margins, and cost reductions were on track.
Its dividend payout has been maintained at 15.5 cents per share.
Last month The Warehouse pleaded guilty, and was fined almost $210,000 for breaching the Fair Trading Act.
The Warehouse misled consumers about the advertised price of goods, advertised goods without sufficient quantities being available in stock to "bait" customers, made false claims that certain products were "exclusive to The Warehouse", and used false labelling.
The conviction came after a previous settlement with the Commerce Commission in 2004, when the company promised to improve staff training and its Fair Trading Act compliance.
- NZPA/HERALD ONLINE
