The Warehouse appears to be going back to basics after
delivering a disappointing full-year result where after-tax
profit was down almost 9% to $76 million, at the bottom end
of earlier guidance and well below analysts' expectations.
Profits for The Warehouse were slightly down on last year but
shareholders were nevertheless rewarded with a special
dividend for the second year running, and the prospect of
more to come.
Bellwether retailer The Warehouse is expected to post flat
full-year results tomorrow amid declining market share,
discounting to shift stock, and scoured profit margins.
Investors have had a reality check in the last two months as
global equity markets have lost this year's gains, and some
of last year's as well, Forsyth Barr broker Suzanne Kinnaird
says.
The Warehouse Group Limited reported a drop in sales in the
third quarter, after continued contraction in the music and
DVD market, and warm weather affecting sales of winter
apparel and heating.
