The Warehouse Group FY24 Third Quarter Sales Update

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The Warehouse Group – FY24 Q3 trading update
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Auckland, 10 May 2024

The Warehouse Group (“the Group”) has today provided a trading update for the 13 weeks ending 28
April 2024 (“FY24 Q3”) and the 39 weeks year to date.
The Group reported total sales of $695.5 million in FY24 Q3, a decline of 9.2% compared to the same
period in FY23 Q3, resulting in total sales of $2.3 billion in FY24 year to date (“YTD”), down 6.2%
compared to FY23 YTD.
• The Warehouse sales were $408.3 million in FY24 Q3, down 8.1% compared to prior year;
• Warehouse Stationery sales were $60.8 million in FY24 Q3, down 7.5% compared to prior
year; and
• Noel Leeming sales were $224.7 million in FY24 Q3, down 9.3% compared to prior year.
The comparative period in FY23 saw an unusual upward sales trend following the Auckland floods and
Cyclone Gabrielle where there was increased demand for household items, apparel and appliances
from The Warehouse.
Group gross profit was $227.9 million in FY24 Q3, down 12.8% compared to FY23 Q3, with Group gross
profit margin decreasing 130 basis points to 32.8% in FY24 Q3. Year to date, Group gross profit margin
increased 60 basis points to 33.8% in FY24 YTD.
BRAND UPDATE
The Warehouse sales declined 8.1% to $408.3 million in FY24 Q3, and a decline of 5.8% to $1,373.9
million in FY24 YTD. Growth categories in the quarter include grocery, visual products, particularly
TVs and seasonal home, offset by reduced sales in apparel and footwear.
Warehouse Stationery sales declined 7.5% to $60.8 million in FY24 Q3, and a decline of 5.8% to $178.7
million in FY24 YTD. Warehouse Stationery saw continued growth in our print and copy service
offering, while most other categories saw softening demand including print and consumables, and
office furniture.
Noel Leeming sales declined 9.3% to $224.7 million in FY24 Q3, and a decline of 4.4% to $769.1 million
in FY24 YTD. While Noel Leeming saw growth in audio, tech wearables, and commercial sales, we saw
a reduction in demand for computers, televisions, and whiteware.
UPDATE ON THEMARKET.COM
In March 2024, the Group shared our intention to sell or close TheMarket.com. Subsequently we have
engaged with a number of interested parties, however we now confirm TheMarket.com will close by
late June 2024.

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The Warehouse Group Chief Executive Officer Nick Grayston says, “When we launched
TheMarket.com in 2019 we were responding to a customer need for access to goods through an
omnichannel approach. The initiative also gave us the opportunity to provide our customers access
to a broader range of products supplied by third party vendors.
“We are disappointed TheMarket.com did not meet our aspirations and we will close the front-end
of the platform. However, we will use the engine we have built and harness the learnings and
innovation we have acquired to continue to power the extended third party offering for The
Warehouse website and app.”
OUTLOOK
“This has been another challenging quarter for the Group. Trading conditions remain highly
uncertain. We are focused on gross margin improvements and continued tight control of costs for
the final quarter of our financial year. We will continue to invest in our value proposition, offering
Kiwi families affordable essentials across all categories,” says Mr Grayston.

ENDS
Contact details regarding this announcement:

Investors and Analysts: Mark Stirton, Chief Financial Officer
To be contacted via Julia Belk, Investor Relations Manager
+64 21 240 8997
julia.belk@thewarehouse.co.nz

Media: Caitlin Madden, Corporate Affairs Partner
+64 21 613 821
Media.enquiries@thewarehousegroup.co.nz

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Quarterly Sales
Reporting Period 39 weeks to 28 April 2024
Previous Reporting Period (2023) 39 weeks to 30 April 2023
Quarterly Retail Sales information:
SalesSales
(31 July 2023 to 28 January 2024)
20242023
($ Million) ($ Million)
The Warehouse
965.6 1,013.7
- 4.7 %
Warehouse Stationery117.9 124.1
- 5.0 %
Noel Leeming544.4 556.7
- 2.2 %
Total Group
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1,632.7 1,716.8
- 4.9 %
SalesSales
(29 January 2024 to 28 April 2024)
20242023
($ Million) ($ Million)
The Warehouse
408.3 444.1
- 8.1 %
Warehouse Stationery60.8 65.7
- 7.5 %
Noel Leeming224.7 247.8
- 9.3 %
Total Group
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695.5 765.9
- 9.2 %
SalesSales
(31 July 2023 to 28 April 2024)
20242023
($ Million) ($ Million)
The Warehouse
1,373.9 1,457.8
- 5.8 %
Warehouse Stationery178.7 189.8
- 5.8 %
Noel Leeming769.1 804.5
- 4.4 %
Total Group
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2,328.2 2,482.7
- 6.2 %
Store Numbers
202420232024202320242023
Start Quarter 3
88 88 67 68 66 67
End Quarter 3
86 87 66 67 66 66
Store footprint
(Square Metres)
202420232024202320242023
Start Quarter 3
469,818 473,359 83,815 83,064 49,031 51,285
End Quarter 3
460,143 468,689 80,128 82,619 49,031 50,660
- - 2 -
- - - -
- - 1 -
Note:
Noel Leeming
Noel LeemingThe Warehouse
The Warehouse Group Limited
First half sales
Third quarter sales
The Warehouse
Warehouse Stationery
Change in
sales
Year to date sales
Change in
sales
Change in
sales
The Warehouse
Warehouse Stationery
Noel Leeming
1) Total Group sales includes TheMarket segment, eliminations and other Group operations in addition to the 3 main retail operations detailed above.
Store changes during the quarter
Warehouse Stationery
Store
extension/
reduction
Store
closure
New
store
Replacement
store