The Warehouse Group has seen sales continue to fall but has posted a half-year profit in what it says is a sign of a “turnaround”.
The company saw sales fall by $1.6 billion for the six months to January, down 1.6% on the same period last year. It recorded an after-tax profit of $11.8 million, an improvement on a $23.7 million loss the year before.
Warehouse Group Chair Dame Joan Withers said the retail sector remains under “sustained pressure”, but it was taking action to strengthen its position.
“Consumers are facing tough and uncertain economic conditions and demand remains subdued,” she said.
“Against this backdrop, the team has made real progress – an improving sales trend, cutting costs and capital expenditure, and focusing on the fundamentals. But clearly there’s more to do.”
Dame Joan added: “Retail is cyclical, and while we believe we’re at the bottom of the cycle now, our disciplined approach, positive cash position and liquidity give us confidence that we will emerge stronger.”
Interim Chief Executive Officer John Journee said the company was focussed on its new strategy, focussing on its brand and delivering different product ranges.
Warehouse stores had sales of $944.7 million for the half-year, down 2.2%. Toys, furniture and audio saw positive growth.
“The Red Shed is holding its ground in a competitive market, but further momentum will come with our upcoming winter and summer ranges as these will increasingly include product assortments planned and delivered under our new strategy, with sharper pricing and a clearer customer focus,” Journee said.
Elsewhere in the group, Warehouse Stationery reported sales of $109.8 million for the half-year, down 6.8% on the prior year.
Noel Leeming delivered sales of $548.9 million for the half-year, up 0.8% on the previous year.
The Warehouse Group board said it was making “good progress” in its search for a permanent Chief Executive, with a strong pool of candidates.
