Warehouse first-quarter sales fall 2.1% as consumer demand slides

Sales fell to NZ$366.6 million in the quarter ended Oct. 26, the company said in a statement.

"Trading conditions have been difficult but sales were on plan for the quarter with margins being held at levels similar to last year," managing director Ian Morrice said. The decline was most evident in "appliances and larger ticket items such as outdoor furniture and other discretionary products."

New Zealand's economy fell into recession in the first half of the year and the slump will probably be extended by a global downturn. Morrice said consumer spending and trading conditions will "remain subdued for some time."

Sales at the company's Warehouse Stationery outlets fell 5.6% to US$44.2 million.

The company's shares were unchanged at NZ$4.01 and have declined about 30% this year, matching a decline in the NZX 50 Index.

By Jonathan Underhill

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