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| Business Description | |
| Company's activities |
The Warehouse Group (WHS) is a general merchandise retailer in New Zealand operating three businesses: The Warehouse New Zealand (85 stores); Warehouse Stationery (43 stores in NZ); and The Warehouse Australia (124 stores). |
| Strategic Analysis | |
| Analysis of company's stated forward thinking |
The Warehouse-style store format strategy focuses on competitively-priced, house-branded products. WHS sees opportunities to grow Warehouse New Zealand (Red Sheds) through increasing store coverage, in particular in metropolitan areas. The product offering was extended with the introduction of a limited dry grocery category in FY04.The stationary division (Blue Sheds) is aiming to grow by increasing the number of mega-stores and continue developing multi-channel and business to business retailing. Product mix will be rebalanced to reduce exposure to business machines, including computers, due to strong competitive pressure.Warehouse Australia (Yellow Sheds) will continue development of destination retail outlets across QLD, VIC, SA and NSW. The company attempts to leverage successful New Zealand ranges with modifications to suit Australian demand characteristics. The basis of the Australia stores was the 2000 acquisition of Clint's Crazy Bargains and Silly Solly's. These old format stores are being replaced by stores replicating the NZ format.The Warehouse Group reported a net loss of NZ$7.96m for the half year ended 29 January 2006. This compares with the net profit of NZ$53.88m achieved in the previous corresponding period. The current period result included a pre-tax charge of NZ$88.8m on the divestment of The Warehouse Australia, in line with company expectations. Revenues from ordinary activities were NZ$1,107m, down 10% from the same period last year. Sales from continuing operations grew 2% to NZ$933.0m. Diluted EPS was -2.6 NZ cents compared to 17.6 NZ cents last year. Net operating cash flow was NZ$87.8m compared to NZ$73.0m last year. The interim dividend declared was 10.5 NZ cents, flat on last year. Adjusting for the Australian divestment, the Group is forecasting full year earnings of between NZ$83m and NZ$88m. |
| Last Financial Year End | |
| Reporting period |
30/07/05 |
| Indices | |
| S&P / ASX Indexes |
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