WHS
07/05/2004
QUARTER
REL: 0942 HRS The Warehouse Group Limited
QUARTER: WHS: Third Quarter Sales Up 9.5%
1.0 Group Sales (all sales expressed in NZ dollars)
The Directors of The Warehouse Group Limited report that unaudited sales for
the thirteen weeks ended 2 May 2004 were $493.5 million. This figure is 9.5
percent, or $42.7 million, above that for the corresponding period last year
of $450.8 million. Sales for the thirty-nine weeks ended 2 May 2004 were 12.2
percent ahead of the same period last year.
2.0 Operational Results (all sales expressed in local currency)
2.1 The Warehouse New Zealand
The Warehouse New Zealand retail stores recorded unaudited sales for the 13
weeks ended 2 May 2004 of $325 million. This represents a 7.6 percent
increase in sales over the $302 million achieved for the corresponding period
last year. Same-store sales increased 5.0 percent in the period.
In the third quarter The Warehouse extended two stores at Greymouth and
Napier. As at 2 May 2004, The Warehouse New Zealand retail chain consisted of
80 stores representing 384,227 square metres of retail space (an increase of
8.9 percent over the prior comparable period).
"After achieving good sales growth in February and March, we have experienced
what we consider to be a weather related slowdown in sales in April.
Unusually dry conditions and have resulted in slow sales in our winter
seasonal lines such as heating and apparel. Assuming we get a "normal" winter
I would expect to see some recovery in sales in the seasonal lines in the
coming months." said Mr Stephen Tindall, Founder and Acting Managing Director
of The Warehouse Group Limited.
In the current quarter, The Warehouse New Zealand plans to open four new
stores. A replacement store at Westcity (Henderson) opened on 6th May, while
three stores will open in new locations at Dargaville, Snells Beach and Te
Kuiti. The Waipapa store (near Kerikeri) that was due to open in July will
now open in the first quarter of the 2004/05 financial year.
Weighted average sales per square metre for the twelve months ended 2 May
2004 were $3,862 (April 2003: $3,872).
2.2 Warehouse Stationery
Warehouse Stationery achieved unaudited sales for the thirteen weeks ended 2
May 2004 of $51.0 million. This represents a 26.2 percent, or $10.6 million,
increase over the corresponding period last year. Excluding
Business-to-Business (B2B) sales, same-store sales increased 17.9 percent in
the period.
As at 2 May 2004 the Warehouse Stationery retail chain consisted of 41 stores
representing 54,145 square metres of retail space (an increase of 17.9
percent over the comparable period last year).
Warehouse Stationery is currently completing a market trial of a new
mega-store format launched in December 2003 at Whangarei. No new stores were
opened during the quarter. Two further new format stores (Upper Hutt and
Henderson) are planned to open before the end of July 2004.
Excluding B2B sales, weighted average sales per square metre for the twelve
months ended 2 May 2004 were $3,620 (April 2003: $3,142).
2.3 The Warehouse Australia
The Warehouse Australia achieved unaudited sales for the thirteen weeks ended
2 May 2004 of A$103.1 million. This represents a 3.6 percent increase in
sales over the corresponding period last year. In Australian dollar terms,
same-store sales increased by 0.6 percent.
"As indicated in February 2004, merchandising issues have meant we will
continue to have a weak pipeline of product available. This is reflected in
the modest sales growth for the third quarter and will continue until the end
of July 2004. We expect that the work now underway to rebuild merchandising
capability in the Australian business will begin to show results in the first
quarter of the 2005 financial year," said Stephen Tindall.
During the quarter, two new format stores were opened in new locations
(McDowall (QLD) and Lithgow (NSW)). Four old format stores were closed during
the quarter.
As at 2 May 2004 The War