By SIMON HENDERY retail writer
Retail giant The Warehouse surprised investors yesterday by revealing that Christmas sales had been unexpectedly buoyant.
Unaudited figures for the three months to January 31 show shoppers spent $400 million at the discount barns - $38 million more than they did during the same three months last year.
Same-store sales at its 74 red sheds were up 0.7 per cent on the equivalent quarter last year.
After reaching a high of $6.80 in November, The Warehouse's share price was down to $5.26 on Monday, amid concerns that the Christmas quarter figures would be disappointing.
But yesterday's good news pushed the stock up to a high of $5.75 before it closed at $5.60, 11c up from the previous day.
Warehouse Stationery sales were up 50 per cent to $23 million as the division continued its rapid growth.
Sales through the group's 117 Clint's Crazy Bargain and Silly Solly stores in Australia were up 14 per cent in New Zealand dollar terms to $130 million.
Total group sales for the quarter were $553 million, up 12.6 per cent on the same three months last year.
The company said early indications were that New Zealand earnings before interest and tax for the six months to January would be up on the previous year.
But it warned that its Australian operation, acquired last August, would contribute "a small loss to the group result" after goodwill and financial costs were deducted.
Managing director Greg Muir has previously said he expects it will be about two years before the Australian business becomes profitable.
A former Coles Myer executive, David Wilson, has been appointed general manager of the company's red shed operations.
Mr Wilson will report to former chief operating officer Mr Muir, who stepped into the managing director's role this month, replacing company founder Stephen Tindall.
Mr Wilson was previously stores and store development general manager for Coles Myer's Australian Target chain.
Between 1990 and 1993 he worked for the group's Foodtown New Zealand operation, as head of merchandise and then as general manager.
Late Xmas gift for share price
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