The Warehouse Group Third Quarter Sales Update

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To: Market Information Services Section
NZX Limited
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Auckland, 14 May 2021

The Warehouse Group reports continuing strength with third quarter sales growth

The Warehouse Group (“TWG”) is reporting its third quarter (“Q3 FY21”) sales update, predominantly compared to
results of the third quarter in FY19 (“Q3 FY19”) to reflect a clearer performance comparison than against Q3 FY20,
which was strongly affected by disruption to operations and store closures caused by COVID-19.

Highlights
• Group third quarter sales were $791.2m, up 35.0% on Q3 FY20, and up 10.8% on Q3 FY19
• The Warehouse third quarter sales were $409.9m, up 6.1% on Q3 FY19
• Warehouse Stationery third quarter were $71.8m, up 0.4% on Q3 FY19
• Noel Leeming third quarter sales were $263.0m, up 21.2% on Q3 FY19
• Torpedo7 third quarter sales were $35.4m, up 29.9% on Q3 FY19
• Online sales were up 59.7% in Q3 FY21 compared to Q3 FY19, representing 10.8% of total
group sales in the quarter, compared to 7.5% in FY19
• Group gross profit margin was 35.5% for Q3 FY21, up 295 basis points on Q3 FY20 and
up 196 basis points on Q3 FY19



The Warehouse Group today reported sales for the third quarter ending 2 May 2021 of $791.2 million,
up 35.0% on the same quarter last year, and up 10.8% on the same quarter in FY19. Group sales for
the year to date ended 2 May 2021 were $2,599.5 million, up 14.5% on the same period last year, and
up 10.4% on the same period in FY19.
Sales growth was underpinned by significant growth in Noel Leeming and Torpedo7, continuing their
growth and turnaround performances, respectively, of the past year.
Group gross profit margin was 35.5% for Q3 FY21, up 295 basis points on Q3 FY20 and up 196 basis
points on Q3 FY19. Group gross profit margin for the year to date ended 2 May 2021 was 36.0%, up
267 basis points on the same period last year, and up 320 basis points on the same period in FY19.
Group CEO Nick Grayston said he is pleased by the continuation of positive customer demand and
particularly heartened by the strong online growth of 59.7% in Q3 FY21 against the same quarter in
FY19, which reflects the ongoing growth of the Group’s digital shopping platforms.

“While we believe that there are positive consumer tailwinds, we believe that we are seeing strong
continued benefit from many aspects of the transformation that has been underway for the last few
years. However, the future remains uncertain and we are focused on ensuring that we take actions to
manage changes in consumer spending.”

During the third quarter, TWG opened three new stores including a combined The Warehouse and
Warehouse Stationery at Ormiston, a Noel Leeming at Ormiston and a Torpedo7 store in Napier. The
Ormiston stores represent the latest store design and technology offerings, providing customers with
enhanced shopping experiences.

The Warehouse recorded sales of $409.9 million in the quarter, up 6.1% on the same quarter in FY19,
driven mainly by strong category sales in toys, beauty & grooming, as well as seasonal confectionery
with Easter featuring strongly during the period.

Warehouse Stationery recorded sales of $71.8 million in the quarter, up 0.4% on the same quarter in
FY19, including strong category sales in print & consumables, stationery, and office furniture.

Noel Leeming reported sales for the third quarter of $263.0 million, an increase of 21.2% against Q3
FY19, with strong category sales in communications, computers, and whiteware. Noel Leeming also
saw a 52.2% growth in service sales in Q3 FY21 compared to Q3 FY19.

Torpedo7 continued its trajectory of strong sales growth, with recorded sales of $35.4 million in the
quarter, an increase of 29.9% against Q3 FY19. Torpedo7 opened its new store in Napier on 22 March
2021.

In its ongoing commitment to sustainability, the quarter also saw additional EV chargers installed at
Kaitaia, Waipapa and Greymouth, increasing the Group’s existing network from 25 chargers to a total
of 28 located at The Warehouse stores. Four electric trucks for home deliveries were launched,
servicing distribution centres in Auckland, Hamilton, Tauranga and Christchurch. In partnership with
TechCollect New Zealand, a free e-waste recycling programme was launched at 16 Noel Leeming
stores.

Mr Grayston also noted that access to period products was enhanced in the quarter with period product
donation bins now in 26 stores and products provided free to TWG team members in all team bathrooms
throughout NZ.

Guidance for FY21

As a result of the strength of trading through to the end of Q3, and the expectation that Q4 FY21 Group
sales will be similar to Q3 FY21, adjusted NPAT for the full year is expected to exceed $160 million,
subject to no material changes in trading conditions. Gross margin levels are consistent with those
achieved during the first half of the financial year.

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
kim.russell@thewarehouse.co.nz

Media: Jordan Schuler, Corporate Affairs Partner
+6421 143 6930
media.enquiries@thewarehouse.co.nz

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Quarterly Sales
Reporting Period 39 weeks to 2 May 2021
Previous Reporting Period (2020) 39 weeks to 26 April 2020
Previous Reporting Period (2019) 39 weeks to 28 April 2019
Quarterly Retail Sales information:
SalesSalesSales
(3 August 2020 to 31 January 2021)
202120202019
($ Million) ($ Million) ($ Million)
The Warehouse
967.3 938.8 929.5
+ 3.0 %
+ 4.1 %
Warehouse Stationery136.6 133.8 132.8
+ 2.1 %
+ 2.9 %
Noel Leeming593.2 512.8 487.3
+ 15.7 %
+ 21.7 %
Torpedo7
1
84.9 65.8 59.1
+ 29.0 %
+ 43.6 %
Total Group
2
1,808.3 1,683.4 1,640.5
+ 7.4 %
+ 10.2 %
SalesSalesSales
(1 February 2021 to 2 May 2021)
202120202019
($ Million) ($ Million) ($ Million)
The Warehouse
409.9 297.3 386.3
+ 37.9 %
+ 6.1 %
Warehouse Stationery71.8 64.5 71.5
+ 11.3 %
+ 0.4 %
Noel Leeming263.0 193.6 217.0
+ 35.9 %
+ 21.2 %
Torpedo7
1
35.4 22.0 27.2
+ 60.8 %
+ 29.9 %
Total Group
2
791.2 586.3 714.4
+ 35.0 %
+ 10.8 %
SalesSalesSales
(3 August 2020 to 2 May 2021)
202120202019
($ Million) ($ Million) ($ Million)
The Warehouse
1,377.2 1,236.1 1,315.8
+ 11.4 %
+ 4.7 %
Warehouse Stationery208.4 198.3 204.3
+ 5.1 %
+ 2.0 %
Noel Leeming856.2 706.3 704.3
+ 21.2 %
+ 21.6 %
Torpedo7
1
120.2 87.8 86.4
+ 36.9 %
+ 39.2 %
Total Group
2
2,599.5 2,269.7 2,354.9
+ 14.5 %
+ 10.4 %
Store Numbers
20212020202120202021202020212020
Start Quarter 3
909273 76 71 70 20 20
End Quarter 3
909272 75 71 70 21 20
20212020202120202021202020212020
Start Quarter 3
487,884 499,756 77,795 79,790 65,849 69,865 27,030 26,489
End Quarter 3
488,201 499,756 78,021 77,667 65,805 69,865 28,230 26,489
1 -1-
1 -1-
1 -2-
1 - - -
Note:
Change in
sales
vs 2020
Change in
sales
vs 2019
Replacement
store
Store
closure
Store
extension/
reduction
Store footprint
(Square Metres)
New
store
Third quarter sales
The Warehouse Group Limited
Supplementary Information
First half sales
Change in
sales
vs 2020
Change in
sales
vs 2019
Change in
sales
vs 2020
Change in
sales
vs 2019
Year to date sales
Noel Leeming
Warehouse StationeryTorpedo7
The Warehouse
The Warehouse
The WarehouseNoel Leeming
Warehouse StationeryTorpedo7
1) Sales for the Torpedo7 segment have been restated to exclude sales relating to the 1-day online business which have been reclassified and reported as part of
TheMarket segment in the current financial year.
2)In addition to the 4 main retail operations, total Group sales includes TheMarket segment, eliminations and other Group operations.
Warehouse Stationery
Noel Leeming
Torpedo7
Store changes during the quarter