The Warehouse Group FY25 Q1 Trading Update

NZX | Media release – 8 November 2024

Q1 Trading Update: The Warehouse Group transition
underway in challenging retail conditions

The Warehouse Group (“the Group”) has today provided a trading update for the 13 weeks
ending 27 October 2024 (“FY25 Q1”).

The Group reported total retail sales of $668.0 million, a decrease of 2.5% compared to
FY24 Q1 but representing an improvement on the 5.9% year-on-year decline experienced in
FY24 Q4
1
. The Group traded from 218 stores in FY25 Q1, down from 221 in FY24 Q1.
Same store sales (excluding online) showed a smaller decline of 2.0% that highlights
stronger performance in existing locations. Online sales decreased 12.9% which represents
6.3% (7.0% in FY24 Q1) of Group retail sales as the Group continues to rationalise the
product offering from third party vendors.

Average retail selling prices were down 7.9% on the same period last year as the Group
focuses on resetting key price points across its categories to enhance its everyday low price
value positioning. More competitive pricing has resulted in the number of units sold being up
6.4% on the prior period.

Group same store foot traffic declined 0.8% in FY25 Q1 on the prior comparable period.
Pleasingly, Group customer conversion was up 242 basis points to 58.0% on the same
period, but basket sizes remain constrained as customers shopped strongly into essential
categories and clearance.

The Warehouse Group Interim CEO John Journee says trading conditions remain
challenging, however, there are some positive signs.

“We’re seeing an encouraging response from customers to our new summer ranges as they
land at The Warehouse, especially in homeware and apparel. At Noel Leeming we’re holding
market share in a contracting market which speaks to the strength of the value proposition
and the performance of our team in tough trading conditions.”

Retail sales for the period in The Warehouse were $386.3 million, down 2.0% (same store
sales down 0.5%) improving on the decline of 3.7% from FY24 Q4.

Noel Leeming’s retail sales were $229.1 million, down 2.1% with a strong performance from
the commercial division providing support in the face of continued soft demand for
discretionary goods and helping to defend their market leading position.

The Warehouse Group Limited
26 The Warehouse Way, Northcote, Auckland 0627
www.twg.co.nz

Warehouse Stationery has faced more headwinds in the period, with sales down 6.8% to
$50.9 million primarily due to the muted small medium business environment, a key
customer base for this brand.

The current highly promotional retail environment is placing pressure on gross margins
across all three brands. The Warehouse margin was the most challenged during the quarter,
as lower margin product mix changes year on year, and higher than planned markdowns
occurred within the apparel department post-winter. As communicated at our FY24 year end,
these issues are a key focus of management for The Warehouse turnaround plans.

Looking ahead
“Our transition is underway, with our focus firmly on trading each of our core brands and
refreshing key product ranges at better value. However, these changes will take time to fully
show results, and we’re mindful that a sustained improvement in performance also relies on
the broader economy bouncing back. While we’re making progress, we expect our near term
results to remain mixed as the benefits of our improved product offer are muted by
challenging market conditions,” says Mr Journee.

“With nearly a third of all Kiwis continuing to come through our doors each week we’re well-
placed to seize the opportunities in front of us as our new product assortments land, and
economic conditions improve.

“We remain cautious as we look ahead to Christmas and expect the trading environment to
remain tight and highly competitive. We will be firmly focused on bringing great value
products to our customers as we continue to execute our turnaround plans.”


Ends

For media queries please contact: For investor queries please contact:
Julian Light
General Manager Corporate Affairs
+64 21 243 8528
julian.light@twgroup.co.nz
Julia Belk
Investor Relations Manager
+64 21 240 8997
julia.belk@thewarehouse.co.nz


1
All prior comparable periods exclude Torpedo7.

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Quarterly Sales
Reporting Period13 weeks to 27 October 2024
Previous Reporting Period (2024)13 weeks to 29 October 2023
Quarterly Retail Sales information:
SalesSales
(29 July 2024 to 27 October 2024)
20252024
($ Million)($ Million)
The Warehouse 386.3 394.2 - 2.0 %
Warehouse Stationery50.9 54.6 - 6.8 %
Noel Leeming229.1 234.1 - 2.1 %
Total Group
1
668.0 685.4 - 2.5 %
Store Numbers
202520242025202420252024
Start Quarter 186 88 66 67 66 66
End Quarter 186 88 66 67 66 66
Store footprint
(Square Metres)202520242025202420252024
Start Quarter 1460,121 472,358 80,137 84,186 49,030 50,203
End Quarter 1460,121 469,818 80,137 83,815 49,030 49,031
- - - -
- - - -
- - - -
Note:
The Warehouse Group Limited
First quarter sales
Change in
sales
The Warehouse
Warehouse Stationery
The WarehouseWarehouse StationeryNoel Leeming
Noel LeemingThe Warehouse
Noel Leeming
1) Total Group sales includes ChocolateWorks, 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