Sharechat Logo

Warehouse unfazed by low kiwi dollar

By Phil Boeyen, ShareChat Business News Editor

Friday 25th August 2000

Text too small?
The Warehouse is reassuring investors - and customers - who are worried about the effects the low kiwi dollar may have on the price of the company's products.

The discount retailer says it operates a foreign exchange hedging and on average has six months of forward cover in place at any one time.

It says it is comfortable that the currency policy is delivering sufficient exchange rate certainty for the business to be able to react to adverse movements in the NZ dollar.

As an example The Warehouse says in the 1998 financial year the New Zealand dollar experienced a significant fall from 64c at the end of July 1997 to 51c in July 1998. In that year the company says a combination of renegotiating buy prices and better product sourcing meant it was able to hold prices and produce a 14% increase in net profit.

The company says if the kiwi dollar continues to stay around current levels or go lower, it is confident that it is well placed to vigorously compete with other retailers and continue to deliver bargains for customers.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

  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

IRG See IRG research reports