The Warehouse Group is expecting a drop in earnings for the 2024 financial year, more bad news for the struggling retailer.

In an updated statement this morning, The Warehouse group said it was expecting sales from continuing operations to be 6-7% lower than the prior year, and earnings before interest and taxes (EBIT) to be in the range of $22 million to $30 million, compared to $83.4 million in the prior year. This excludes the loss from discontinued operations and any potential restructuring costs.

“Retail across New Zealand is under pressure, and we are no exception,” interim chief executive John Journee said.

“Market conditions and cost of living pressures have continued to be challenging into our fourth quarter and we expect these conditions to continue through to our year end.

“We are taking decisive action internally to address areas we can improve. We are exercising tighter cost control and we have a laser focus on trading our core brands, The Warehouse, Warehouse Stationery and Noel Leeming.”

The Warehouse posted a $24m loss for the six months to January.

Nick Grayston resigned as chief executive last month.

The company recently sold Torpedo7 for $1, and is set to close.

The group will report its FY24 Annual Results on September 26.