Warehouse first quarter sales drop 1%
The Warehouse Group Limited (WHS) reported a 1% drop in sales to $362.9 million for the quarter ended 1 November 2009 versus the previous corresponding period. The New Zealand based group said first quarter sales, adjusted for discontinued activities, were up 1.1% to $317.7 million with same store sales up 0.5%.
After adjusting for the discontinued fresh produce, frozen food and liquor operations, sales were up by 1.2%.
CEO, Ian Morrice, said it was the third consecutive quarter of same store sales growth.
”Although August was a solid trading month, September and October were below expectations highlighting a slow start to the sales of seasonal categories,” Mr Morrice said.
The company said Warehouse Stationery’s first quarter sales were up 2.2% to $45.2 million with same store sales up 3.8% on the corresponding period last year.
”In the high ticket categories impacted most during the downturn, the first quarter saw positive sales growth in technology and business machines but the market for office furniture remained below last year,” Mr Morrice said.
He added that retail demand remains unpredictable despite improving consumer confidence, which was illustrated by Thursday’s retail sales statistics.
“Also evident was the extent to which many specialist retailers who were particularly hard hit in the same quarter last year are seeing increased sales off this low base at the present time,” Mr Morrice said.
As at 1020 AEDT, Warehouse Group shares were unchanged at $3.30.
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