Warehouse third quarter sales down nearly 3pc

Sales at the Warehouse were down 2.8 per cent in the threee months to April 26.

Retail giant The Warehouse Group has reported third quarter sales down 2.8 per cent on the corresponding period last year to $383.5 million.

Chief executive Ian Morrice said consumer demand remained soft in the three months to April 26, but The Warehouse had made significant progress towards improving its market position.

"Despite a slower than preferred start to winter we are confident that our strong seasonal offer will support continued positive momentum," he said today.

Group sales for the financial year-to-date were 2.9 per cent down on the same period last year to $1.3 billion.

The Red Sheds third quarter sales dropped 1.5 per cent to $332.4m, with year-to-date sales down 2 per cent to $1.17b.

Third quarter sales last year included sales of fresh and frozen foods and liquor, which have been discontinued.

Same store sales for the quarter were up 1 per cent compared to last year.

Warehouse Stationery's third quarter sales were down 10.5 per cent to $51.1m, while year-to-date sales were down 9.2 per cent to $139.6m. Same store sales for the quarter were down 9.9 per cent.

Morrice said the stationery and office products sector remained difficult with higher ticket technology, office equipment and furniture sales down significantly on last year.

The directors' view remained that adjusted net profit for the full year would be similar to that for the previous year, subject to any adverse change in trading conditions.

The full year result for the year to August 2 will be released on September 11.

Shares in The Warehouse closed at $3.75 yesterday, up from a year-low of $3 last October but well down on the $5.85 a year ago.

- NZPA