The Warehouse Group Third Quarter Sales Update

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To: Market Information Services Section
NZX Limited
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Friday, 10 May 2019

The Warehouse Group delivers Third Quarter 1.9% increase in sales to
$714.4m

Highlights

• Q3 same store sales growth across all four brands delivering Group sales of $714.4m
• The Warehouse recorded sales of $386.3m, up 0.8% on the same quarter last year
• Torpedo7 sales up 6.9% with seven new stores opened in the past 12 months
• Online sales up 18.7% YOY


The Warehouse Group today reported Group retail sales for the third quarter ending 28 April of
$714.4m, up $13.2m or 1.9% compared to the same quarter last year.

Group Chief Executive Nick Grayston said although there was still more work to do, it was pleasing to
see that the substantial work undertaken to improve business performance had now delivered an
upward sales trend over five consecutive quarters of growth.

“We’re encouraged that our sales are heading in the right direction, as we continue to drive changes
to meet changing customer expectations and leverage our Group scale to operate more efficiently
and delivers growth in earnings,” said Nick Grayston.

During the quarter the Group announced its CarboNZero certification, an environmental achievement
that was the first for any large company in New Zealand and only the third retailer in the world.

“Our goal is to be New Zealand’s most sustainable retailer, because taking responsibility for our
impact on the environment is the right thing to do, but also because we believe it will give us a
competitive advantage.”

The Warehouse recorded sales of $386.3m, up 0.8% on the same quarter last year. Same store sales
for the quarter were up 1.7% which was an improvement on the relatively flat preceding quarter.
Margins were up across most categories and clearance improved significantly on last year, however
units sold were down 0.8%.

“We had a pleasing Easter performance with seasonal confectionery unit growth up 2.4% and an
improved sell-through rate compared to last year. Easter fell late in the year and coincided with Anzac
Day and the school holidays to create favourable trading conditions, with people having more time to

shop.”

“Grocery continued to trade well, particularly in confectionery and health and beauty, with
Valentine’s Day fragrances popular. We are also seeing intense competition in Apparel, Footwear,
Jewellery and Intimates with units down 3.2%.”

Warehouse Stationery reported sales for the third quarter of $71.5m, up 0.6% compared to the same
quarter last year. Same store sales were up 0.6% and it was pleasing to see a third quarter of sales
growth after operation integration issues in FY18.

Noel Leeming reported sales of $217.1m for the third quarter, an increase of $4.9m, or 2.3%
compared to the same quarter last year. Same store sales increased by 1.0% in the quarter.

“Performance was strong across all categories, resulting in continued market share growth in a
competitive market. Small Appliances and Audio Visual and Gaming categories performed particularly
well.”

The Easter and Anzac Day public holidays and fine weather conditions also contributed to positive
results for the outdoor adventure brand Torpedo7 with sales of $39.1m, an increase of $2.6m or 6.9%
compared to the same quarter last year. Same store sales increased 2.3% in the quarter.

Group online sales continue to grow significantly, up 18.7% on Q3 last year. Nick Grayston said the
Group is continuing to invest in its new digital platform, with a testing phase commencing in Q4.

The third quarter sales results are in line with expectations. The full year Adjusted Net Profit guidance
of $63m–66m remains unchanged, subject to any material changes in anticipated trading conditions.


Contact details regarding this announcement:

Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Annie Zhang, Investor Relations Manager
+64 21 831 479, annie.zhang@thewarehouse.co.nz

Media: Nick Grayston, Group Chief Executive Officer
To be contacted via Jessamy Malcolm Cowper, +64272 752 834,
media.enquiries@thewarehouse.co.nz.

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Quarterly Sales
Reporting Period 39 weeks to 28 April 2019
Previous Reporting Period 39 weeks to 29 April 2018
Quarterly Retail Sales information:
SalesSales
(30 July 2018 to 27 January 2019)
20192018
($ Million) ($ Million)
The Warehouse 929.5 930.3 - 0.1 % + 0.8 %
Warehouse Stationery132.8 129.0 + 3.0 % + 2.5 %
Noel Leeming487.3 453.9 + 7.4 % + 5.1 %
Torpedo789.9 88.6 + 1.5 % + 0.7 %
SalesSales
(28 January 2019 to 28 April 2019)
20192018
($ Million) ($ Million)
The Warehouse 386.3 383.1 + 0.8 % + 1.7 %
Warehouse Stationery71.5 71.1 + 0.6 % + 0.6 %
Noel Leeming217.1 212.2 + 2.3 % + 1.0 %
Torpedo739.1 36.5 + 6.9 % + 2.3 %
SalesSales
(30 July 2018 to 28 April 2019)
20192018
($ Million) ($ Million)
The Warehouse 1,315.8 1,313.3 + 0.2 % + 1.1 %
Warehouse Stationery204.3 200.1 + 2.1 % + 1.9 %
Noel Leeming704.3 666.1 + 5.7 % + 3.9 %
Torpedo7129.0 125.1 + 3.1 % + 1.1 %
Store Numbers
20192018201920182019201820192018
Start Quarter 3939377 79 70 70 18 11
End Quarter 3939377 79 70 69 18 11
20192018201920182019201820192018
Start Quarter 3504,602 507,476 80,273 76,055 71,376 72,895 26,186 12,652
End Quarter 3502,154 506,106 80,273 76,055 70,529 71,029 26,186 12,652
- - - 4
- 4 - -
- - - -
- - - -
The Warehouse
Warehouse Stationery
Noel Leeming
Torpedo7
Store changes during the quarter
New
store
Replacement
store
Store
closure
Store
extension/
reduction
Store footprint
(Square Metres)
The WarehouseNoel LeemingWarehouse StationeryTorpedo7
Year to date sales
Change in
sales
Change in
same store
sales
The WarehouseNoel LeemingWarehouse StationeryTorpedo7
Third quarter sales
Change in
sales
Change in
same store
sales
The Warehouse Group Limited
Supplementary Information
First half sales
Change in
sales
Change in
same store
sales