Warehouse reports 10pc rise in Q4 sales

By NZPA

Wednesday 7th August 2002

Bargain retailer The Warehouse Group has reported a 10.9 per cent increase in its fourth quarter sales to July 31, compared with the same period last year.

New Zealand stores recorded a 3.9 per cent increase in overall sales, with same-store sales down 0.3 per cent in the quarter.

But Warehouse chief executive Greg Muir said the results were pleasing, considering that during the fourth quarter last year, the New Zealand "red sheds" had to discount to reduce stock levels , increasing sales but reducing margin.

"Annual sales for the group to the end of July 2002 were up 12.1 per cent over last year," he said.

Much of the growth came from the Warehouse Stationery arm, which recorded sales growth of 34 per cent this quarter and annual growth of 33 per cent. Mr Muir said it was the sixth year in succession that the stationery arm had had sales in excess of 30 per cent.

Same-store sales were 22.2 per cent ahead of the same quarter last year. The company will open two new stationery stores in Invercargill and Tauranga before the end of the year.

The Warehouse's bumpy venture into Australia saw sales increase nearly 34 per cent in Australian dollars, and same-store sales increase 14 per cent, during the quarter.

The company had exceeded its plans slightly and opened 21 stores in the July financial year, and planned to open another 20 stores over the next 12 months.

Value-wise, the group's fourth quarter sales were $437.5 million, giving a 10.9 percent increase worth $43 million, compared with $395 million.

Unaudited sales for the 12 months ended July 31 were $1.885 billion, or 12 percent up on the previous year. New Zealand Warehouse store sales were $290 million for the quarter and $1.256 billion, or 8.1 percent higher for the year.

Warehouse Stationery achieved unaudited sales of $34.3 million for the quarter and $124.4 million for the year. Warehouse Australia earned $A96.8 million ($NZ115 million) for the quarter and $A393.3 million for the year.

The Warehouse will report its year end results on September 6.

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