Sharechat Logo

Warehouse first-quarter sales fall 2.1% as consumer demand slides

Friday 7th November 2008

Text too small?
Warehouse Group Ltd., the discount chain that may be a takeover target for Australia's Woolworths Ltd., said first-quarter sales fell 2.1% on dwindling consumer demand.

Sales fell to NZ$366.6 million in the quarter ended Oct. 26, the company said in a statement.

"Trading conditions have been difficult but sales were on plan for the quarter with margins being held at levels similar to last year," managing director Ian Morrice said. The decline was most evident in "appliances and larger ticket items such as outdoor furniture and other discretionary products."

New Zealand's economy fell into recession in the first half of the year and the slump will probably be extended by a global downturn. Morrice said consumer spending and trading conditions will "remain subdued for some time."

Sales at the company's Warehouse Stationery outlets fell 5.6% to US$44.2 million.

The company's shares were unchanged at NZ$4.01 and have declined about 30% this year, matching a decline in the NZX 50 Index.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

The Warehouse Group
Warehouse FY profit jumps 61 percent on property sales, acquisitions
Warehouse firms up plans to pay more for staff with training, long service
Warehouse Red Sheds, stationery boost 3Q sales, FY guidance unchanged
Warehouse seeks better workforce with higher pay, more training
Warehouse almost doubles 1H profit on property sales, dividend beats expectations
Warehouse buys majority stake in online retailer Torpedo7 for up to $33M
Warehouse buys unprofitable Noel Leeming chain for $65M
Warehouse 1Q sales rise 1.9% as stationery leads growth
Warehouse buys Insight Traders