The Warehouse Group Limited Analysis

Overview

The Warehouse Group Limited (WHS) was established in 1982 by Stephen Tindall, initially selling imported and manufactured clearance lines in Takapuna, Auckland. The Warehouse has subsequently grown to become one of New Zealand's largest general merchandise retailer. The company also owns The Warehouse Stationery chain.

The group was listed in November 1994 following a public issue of 23.6 million ordinary shares at $2.50.

In 2000 it bought two Australian discount variety chains with 126 stores, Clint's and Silly Solly's, for A$118m, incorporating them into a division called The Warehouse Australia. In November 2005, it agreed to sell its Australian business.

On 31 July 2008 the Court of Appeal announced that it had set aside a clearance granted by the High Court for Woolworths and Foodstuffs to acquire up to 100% of the shares in WHS. Both Woolworths and Foodstuffs hold 10% each of WHS.

On October 9, 2008, WHS announced that, after a review, it had decided to discontinue its plan to roll out the Warehouse Extra format as it did not meet its investment criteria.

Performance

The following information was extracted from The Warehouse Group Limited's half year results, released on 27 March 2026

The Warehouse Group announces FY26 Half Year Results: improved profitability despite tough conditions

• Group sales were $1,612.1m, up 0.3% on FY25 H1 ($1,607.2m), with like for like same store sales1 up 0.5%

• The Warehouse sales were $949.5m, up 0.5% on FY25 H1 ($944.7m)

• Warehouse Stationery sales were $116.1m, up 5.7% on FY25 H1 ($109.8m)

• Noel Leeming sales were $542.2m, down 1.2% on FY25 H1 ($548.9m), reflecting a strong comparative period

• Group gross profit margin was 32.3%, down 20bps on FY25 H1

• Cost of doing business reduced by $8.6m, down 1.7%, improving 70bps to 30.6% of sales (FY25 H1: 31.3%)

• Operating profit (EBIT pre-IFRS16) was $26.9m, up 37.7% from $19.5m in FY25 H1

• Reported Net Profit After Tax of $15.7m, up 33.6% from $11.8m in FY25 H1

• Adjusted Net Profit After Tax of $17.9m, up 67.1% from $10.7m in FY25 H1

• The Group will open new The Warehouse and Noel Leeming stores in Mangawhai in 2027

Despite a challenging retail environment and ongoing cost-of-living pressures on households, The Warehouse Group recorded sales of $1,612.1 million in the six months to 1 February 2026, up 0.3% on FY25 H1, with like for like same store sales increasing 0.5%, while improving profitability through disciplined cost control and improved working capital with lower inventory.

Chair John Journee said the Board sees clear evidence that the Group is on the right path, while recognising the work ahead. “Consumer confidence is volatile and retail conditions remain extremely competitive. Against that backdrop, this is a solid result.

“We have held sales and improved profitability, while continuing to rebuild the foundations of good retailing. New leadership and a new operating model are now in place, and we are seeing the benefit through stronger cost discipline and execution. There is still more to do, and it will take time to restore sustainable returns.”