The Warehouse Group First Quarter Sales Update

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To: Market Information Services Section
NZX Limited
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Auckland, 13 November 2020

The Warehouse Group First Quarter Sales Update

The Warehouse Group today reported sales for the first quarter ending 1 November of $738.5 million,
up 6.3% on the same quarter last year. Gross margin percentage has also been strong, up circa 170
basis points on Q1 last year.

Group CEO Nick Grayston said the result is a positive start to FY21 and continues the sales
momentum of the final quarter of FY20.
“The business is trading well, particularly given the uncertain and unpredictable economic
environment and we are now focused on continuing this momentum as we head into the second
and largest summer trading quarter, said Mr Grayston.
As we saw at the end of the FY20 year, Group online demand continued to grow in the first quarter
of FY21 with sales of $83.7 million, up 58% compared to the same quarter last year. Online sales as a
percentage of total Group sales increased from 7.6% to 11.3%, with all Group brands experiencing
significant online growth.
The Warehouse recorded sales of $379.5 million in the quarter, up 2.9% on the same quarter last
year. Sales increased by 8.1% on a same store sales basis, driven mainly by sales growth in the toys,
leisure and outdoor categories. Of all the brands, The Warehouse was the most impacted by the
second Auckland lockdown from 12 August 2020 to 30 August 2020. During the quarter, the
previously announced store closures of Johnsonville and Dunedin Central occurred. The Dunedin
Central store was also converted to a dark store to support online sales fulfilment in the region.
Warehouse Stationery recorded sales of $61.8 million in the quarter, a decline of 1.9% but up 0.5%
on a same store sales basis. The Store-Within-A-Store programme continued, with the six stores
completed being Masterton, Whanganui, Oamaru, Riccarton, and Te Awamutu. This brings the total
number of SWAS stores to 23.
Highlights:
• Group sales of $738.5 million, up 6.3% on Q1 FY20
• Strong sales growth particularly for Noel Leeming, up 11.5%, and Torpedo7, up 41.8%
• Same store sales growth across all brands
• Online sales growth of 58%, representing 11.3% of Group sales for the quarter

Noel Leeming reported sales for the first quarter of $250.8 million, an increase of 11.5% compared
to the same quarter last year. Quarterly same store sales increased 9.1%. There was sales growth
across all categories, with particular strength in Computers, Communications and Whiteware. During
the quarter the previously announced store closure of Tokoroa occurred.
Torpedo7 recorded very strong sales growth, with a 41.8% increase to $33.8 million on the same
period last year and a 39.2% increase on same store sales. These sale numbers do not include 1-day,
which has previously been reported as part of the Torpedo7 Group. Categories that performed
strongly in the second half of FY20 continue to perform well, including Cycle, Outdoor and
Watersports. There were no new store openings in this quarter.
TheMarket.com has now been operating a full year since August 2019. Now hosting over 4,000
brands and more than two million products, sales through the platform for Q1 were in line with
expectations. For the quarter, TheMarket.com achieved over 1 million monthly sessions which is up
over 300% relative to the same quarter last year.
Group inventory levels have continued to build since the FY20 year end and though our inventory
levels are down on this time last year, we remain confident that we can meet our customer needs.
As has been the case for most retailers, COVID-19 has required additional measures to be taken to
ensure there are sufficient inventory levels to meet customer demand during the peak trading
period. However, there may be some specific categories in the Torpedo7 and The Warehouse
brands that are impacted by delays in international shipping.
As in previous years, the earnings outlook for FY21 will be dependent on the critical second quarter
trading period and earning guidance will be considered on announcement of the Group’s interim
results.

The Annual Shareholder Meeting will take place on Friday 27 November 2020.

ENDS

Contact details regarding this announcement:

Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Kim Russell +64 9 488 3285 or +64 21 452 860

Media: Jordan Schuler, Corporate Affairs Partner +64 21 143 6930
Media.enquiries@thewarehousegroup.co.nz

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Quarterly Sales
Reporting Period13 weeks to 1 November 2020
Previous Reporting Period13 weeks to 27 October 2019
Quarterly Retail Sales information:
SalesSales
(30 August 2020 to 1 November 2020)
20212020
($ Million) ($ Million)
The Warehouse 379.5 368.9 + 2.9 % + 8.1 %
Warehouse Stationery61.8 63.0 - 1.9 % + 0.5 %
Noel Leeming250.8 225.0 + 11.5 % + 9.1 %
Torpedo7
1
33.8 23.8 + 41.8 % + 39.2 %
Store Numbers
20212020202120202021202020212020
Start Quarter 1929374 77 71 70 20 18
End Quarter 1909273 77 70 70 20 19

20212020202120202021202020212020
Start Quarter 1498,955 501,537 77,281 80,273 67,239 70,550 27,030 25,890
End Quarter 1487,884 500,342 77,795 80,254 65,849 69,976 27,030 25,676
- - 2 5
- 5 - -
- - 1 2
- - - -
Note:
Same store sales definition
The same store sales percentage represents annual store sales growth calculated by month for comparable stores (same stores). Non comparable stores (changed and
temporary changed stores) which, by virtue of a change in footprint, catchment or other known factors cause a stores sales to be impacted, are deemed to be changed
stores and excluded from the same store sales calculation.
All stores are categorised as either a same store or a changed store or a temporary changed store. Web stores (online) for the purposes of calculating same store sales are
include in the same store sales calculation providing there has been no fundamental changes to its operating activities during the prior comparable period.
COVID lockdown adjustments
Where the Groups physical stores are unable to open to the public as COVID-19 Alert Levels have been set at Levels 3 and 4, the impacted stores are treated as changed
stores for the period of the lockdown and excluded from same store sales calculations. The same store sales calculations have been adjusted to exclude Auckland stores
which were closed as a result of a 19 day COVID-19 lockdown period which commenced on 12 August 2020 and ended on 30 August 2020.

The Warehouse Group Limited
Supplementary Information
First quarter sales
Change in
same store
sales
Change in
sales
The WarehouseNoel LeemingWarehouse StationeryTorpedo7
Store footprint
(Square Metres)
The WarehouseNoel LeemingWarehouse Stationery

Store changes during the quarter
New
store
Replacement
store
Store
closure
Store
extension/
reduction
1) Sales for the Torpedo7 segment have been adjusted to exclude sales relating to the 1-day online business which will be reported as part of TheMarket segment in
the current financial year.
Torpedo7
The Warehouse
Warehouse Stationery
Noel Leeming
Torpedo7