WHS FY26 Q1 Trading Update and Cost Reset Programme

NZX | Media release – 17 November 2025
The Warehouse Group FY26 Q1 Trading Update and Cost
Reset Programme
The Warehouse Group (“the Group”) has today provided a trading update for the 13 weeks
ended 2 November 2025 (“FY26 Q1”).
• Group sales were $674.1 million, up 0.9% compared to the 13 weeks ending 27
October 2024 (“FY25 Q1”).
• Group like for like same store sales
1
increased 0.1% compared to prior period.
• The Warehouse sales were $389.0 million, up.0.7% compared to FY25 Q1, with like
for like same store sales also up 0.7%.
• Warehouse Stationery sales were $52.2 million, up 2.6% compared to FY25 Q1, with
like for like same store sales up 1.4%.
• Noel Leeming sales were $230.7 million, up 0.7% compared to FY25 Q1, with like for
like same store sales down 1.6%.

The Group reported total sales of $674.1 million, up 0.9% on the same period last year.
Despite a challenging retail environment and a sluggish economy marked by low confidence
and high unemployment, the Group delivered positive sales growth across all brands.
Group like for like same store foot traffic increased 0.2% and conversion improved 30 basis
points to 58.4%, with units sold up 2.6%, showing more customers are visiting stores and
responding positively to improved product lines in key categories.
Average selling prices declined 2.4% due to the highly promotional retail environment,
changing sales mix as grocery continues to grow, and ongoing clearance activity.
Online sales increased 8.2% on prior period and now compromise 7.0% of total sales in
FY26 Q1 compared to 6.5% of total sales in prior period, driven by particularly strong online
sales growth in Noel Leeming.
The Warehouse Group Chief Executive Officer Mark Stirton said, “Sales revenue and units
sold are up, which is an encouraging sign. However, we’re not yet seeing the scale of full
price home and apparel sales needed to materially improve margin performance at The
Warehouse. A warmer winter led to slower sell-through, resulting in increased clearance
activity which also impacted the value perception of our new spring home and apparel
ranges.”

1
Like for like same store sales excludes online sales and Noel Leeming Commercial sales, and compares 13
weeks ending 2 November 2025 with 13 weeks ending 3 November 2024, adjusting for the 53rd week in FY25.

2
The Warehouse Group Limited
26 The Warehouse Way, Northcote, Auckland 0627
While Noel Leeming and Warehouse Stationery gross profit margins have improved, The
Warehouse gross profit margin remains under pressure. This has resulted in Group gross
profit margin down 40 basis points year to date compared to the same period last year.
“There are encouraging signs our new product ranges and in-store experience are
resonating with customers. Trading conditions remain challenging, and we are doubling
down on our efforts to improve gross profit margins and reduce Cost of Doing Business
(CODB) in order to help improve profitability,” said Mr Stirton.
Cost Reset Programme
To address margin pressure and ensure our cost base is sustainable for a value retailer, The
Warehouse Group is implementing a comprehensive cost reset programme, to deliver on our
intention to reduce CODB to below 31% of sales. This programme is a critical step in
restoring profitability and positioning the Group for sustainable growth.
“Our shareholders rightly expect decisive action, and that is exactly what we must deliver,”
said Mr Stirton. “Our strategy is twofold: reducing costs now to recover profitability, while
continuing to invest in the areas that will strengthen The Warehouse Group for the long term,
like our stores, prices and product range.”
The programme will focus on continuing to drive down CODB across the business. It
includes a proposed restructure of head office roles without reducing front line team member
roles.
The Group is also pursuing opportunities to expand its partnership with Tata Consultancy
Services (TCS) and potentially co-sourcing additional areas of the business.
“These are difficult decisions, and we do not take proposed changes that impact our people
lightly. We know the effect this has on our team and their families, especially in the current
economy, and we are committed to supporting our people through the upcoming
consultation and change processes with care and respect over the coming months. These
changes are unfortunately essential to ensure our operating model is fit for purpose and to
secure the future of The Warehouse Group as New Zealand’s leading value retailer,” said Mr
Stirton.
The Group remains focused on disciplined delivery in FY26. In conjunction with our focus on
margin recovery, the cost reset programme is expected to lower The Warehouse Group’s
cost base, help restore profitability, and strengthen capability to support the Group’s long-
term sustainable growth.
Ends
For media queries please contact: For investor queries please contact:
Lizzie Havercroft
General Manager Corporate Affairs
+64 27 507 0613
lizzie.havercroft@twgroup.co.nz
Julia Belk
Investor Relations Manager
+64 21 240 8997
julia.belk@thewarehouse.co.nz

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Quarterly Sales
Reporting Period13 weeks to 2 November 2025
Previous Reporting Period (YE 2025)13 weeks to 27 October 2024
Quarterly Retail Sales information:
SalesSales
(4 August 2025 to 2 November 2025)
20262025
($ Million)($ Million)
The Warehouse 389.0 386.3 + 0.7 % + 0.7 %
Warehouse Stationery52.2 50.9 + 2.6 % + 1.4 %
Noel Leeming230.7 229.1 + 0.7 % - 1.6 %
Total Group
1
674.1 668.0 + 0.9 % + 0.1 %
Store Numbers
202620252026202520262025
Start Quarter 184 86 66 66 66 66
End Quarter 184 86 66 66 67 66
Store footprint
(Square Metres)202620252026202520262025
Start Quarter 1455,430 467,594 79,868 80,233 51,852 51,524
End Quarter 1454,868 467,594 79,899 80,233 52,588 51,524
- - - 1
1 - - -
- 1 - -
Note:
3) Same store sales excludes Online Sales
Noel Leeming
1) Total Group sales includes ChocolateWorks, eliminations and other Group operations in addition to the 3 main retail operations detailed above.
Store
extension/
reduction
Store
closure
New
store
Replacement
store
2) Same store sales calculated on a "like for like" basis are adjusted for the timing effects of last years 53rd week period. This means the comparable period
for the first quarter "like for like" same store sales calculation is the 13 week period ending 3 November 2024.
The Warehouse
Warehouse Stationery
The WarehouseWarehouse StationeryNoel Leeming
Noel LeemingThe Warehouse
Store changes during the quarter
Warehouse Stationery
First quarter sales
Change in
sales
Change in
same store
sales
2,3
The Warehouse Group Limited