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 full year, released on 26 September 2024:

Highlights

• Total Group sales $3.0 billion in FY24, down 6.2% compared to FY23

• The Warehouse sales were $1.8 billion, down 5.3%

• Warehouse Stationery sales were $231.9 million, down 6.7%

• Noel Leeming sales were $1.0 billion, down 5.3%

• Gross Profit Margin held flat at 33.6%

• Adjusted NPAT of $18.9 million, down from $57.4 million in FY23

• Net Loss After Tax of $54.2 million, down from NPAT of $29.8 million in FY23

• Net Debt of $50.7 million.