The Warehouse Group, which reports its first-half profit this
week, will spend up to $33 million buying online retailer
Torpedo7, but brokers say the physical presence of the large
retailer will not diminish.
Opinion remained divided yesterday following the purchase of
consumer electronics chain Noel Leeming Group by The
Warehouse for $65 million, less than half of what the chain
was bought for in 2004.
Retailer The Warehouse has tentatively said it expects to
beat last year's adjusted after-tax profit of $65.2 million,
but remains highly cautionary over crucial January sales and
overall economic conditions.
The Warehouse Group, the country's largest listed retailer,
provided some "reasonable numbers" for the three months ended
October 28 but very little detail, Craigs Investment Partners
broker Chris Timms said yesterday.
The Warehouse yesterday reported a 15% increase in annual
after-tax profit of $89.8 million, but that was underpinned
by a total $25.4 million in one-off gains from property sales
and the release of warrant provisions.
The Warehouse is expected to book increased revenues and
sales for its full-year result on Friday, but squeezed
margins and increasing competition are expected to knock
profits back.
