QUARTER: WHS: Third Quater Sales Update

18 May 2010 8:31 am

WHS 18/05/2010 QUARTER

REL: 0831 HRS The Warehouse Group Limited

QUARTER: WHS: Third Quater Sales Update

THE WAREHOUSE GROUP LIMITED

Third Quarter Sales Update

Auckland, 18 May 2010 - The Directors of The Warehouse Group Limited reported sales for the third quarter ended 2 May 2010 of $376.0 million, down 1.9% on the corresponding period last year.

Group sales for the financial year to date were $1.29 billion, down 0.9% on the same period last year.

The Red Sheds achieved third quarter sales of $323.8 million, down 2.6% compared to the third quarter last year and year to date sales of $1.14 billion, down 1.8%. On a like for like basis, adjusting for the timing effects of last year's 53rd trading week, third quarter same store sales was down 3.3%.

Commenting on sales performance for the quarter, Group Chief Executive Officer, Ian Morrice says ""the sales shortfall against the third quarter last year was almost entirely due to a continued contraction in the music and DVD market and a very slow start to winter with unseasonably warm weather impacting key categories such as winter apparel and heating".

Mr Morrice said the April trading month in particular highlighted that the market remained unpredictable but Easter trading in March had been solid and customers were responding well to growth initiatives in categories such as footwear, sporting goods and jewellery.

Warehouse Stationery had third quarter sales of $52.2 million, up 2.2% compared to the third quarter last year and year to date sales of $148.4 million up 6.3%. On a like for like basis after adjusting for the timing effects of last year's 53rd trading week and the timing of "back to school" in particular, third quarter same store sales was up 11.2%.

Mr Morrice said "the Warehouse Stationery result was an excellent one, particularly in the present climate and further reinforced the company's view that the turn around being achieved by the business is sustainable".

Subject to any material adverse change in expected trading conditions, the Directors remain of the view that adjusted NPAT for the full year will be similar to adjusted NPAT for F09.

ENDS

Background: The Warehouse Group Limited

The Warehouse Group Limited comprises 87 Warehouse stores and 47 Warehouse Stationery stores in New Zealand. The company has a turnover of NZ$1.7 billion and employs over 8,000 people.

Investors and Analysts Luke Bunt Chief Financial Officer Telephone: +64 21 644 882

Media Ian Morrice, Group CEO to be contacted via Wendy Irving on Telephone: +64 9 488 3231 End CA:00194993 For:WHS Type:QUARTER Time:2010-05-18:08:31:47

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