Soft Q3 for Warehouse

It was far from a stellar third quarter of its financial year from New Zealand office and school supplies retailer Warehouse Stationery.

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It was far from a stellar third quarter of its financial year from New Zealand office and school supplies retailer Warehouse Stationery.

For the 13 weeks ended 28 April 2024, the company’s sales were NZ$60.8 million (US$37 million), a year-on-year decline of 7.5%. Year to date, revenue is down 5.8% to NZ$178.7 million.

There was continued growth in the print and copy service offering, while most other categories – including print and consumables, and office furniture – saw softening demand.

Sister brands The Warehouse and Noel Leeming also reported Q3 sales decreases, 8.1% and 9.3% respectively.

The Warehouse Group (TWG) confirmed the closure of its winding down of its marketplace business, TheMarket – a move that had been on the cards since an announcement was made in March. However, while the front-end marketplace will close, TWG will use the engine it built and learnings from the initiative for third-party vendors on its Warehouse website and app.

On a group basis, Q3 gross profit fell by almost 13% to NZ$228 million, with gross margin slipping by 130 basis points to 32.8%.

“This has been another challenging quarter for the group and trading conditions remain highly uncertain,” said TWG CEO Nick Grayston. “We are focused on gross margin improvements and continued tight control of costs for the final quarter of our financial year. We will continue to invest in our value proposition, offering Kiwi families affordable essentials across all categories.”

Auckland, New Zealand