The result, announced on Thursday, had been expected.
The Warehouse noted the previous more buoyant half-year result had included one-off property sales, while the latest half-year to January 25 result was undermined by a late start to summer, plus being hit by one-off costs including subsidiary rebranding.
Chairman Ted van Arkel said while the board recognised the first-half trading was ''challenging in many respects'', strategically, a strong base had been built for the future, with the priority now to deliver a satisfactory return on the investments made.
Last year's full-year adjusted net profit of $60.7 million is this year forecast down to a range of between $52 million and $56 million, while the dividend has been slashed from a forecast 19c per share to 16c.
Shares in The Warehouse closed down 4% to $2.79 yesterday.
Following a January profit downgrade, the company booked a 19% decline in adjusted first-half profit, to $37.2 million.
Craigs Investment Partners broker Peter McIntyre said while the after-tax profit at $37 million was down 19% on a year ago, it was in line with its own guidance and Craigs' expectations, but sales growth during the half was not sufficient to offset the cost of reinvestment in the business.
''The Warehouse now has to achieve the upper end of full-year 2015 guidance to provide the market with confidence that the business is on an improving track. Generating operating leverage remains a key focus for management,'' Mr McIntyre said.
Forsyth Barr broker Suzanne Kinnaird said the normalised $37.2 million profit was ''marginally ahead'' of expectations and in line with recent earnings guidance, but was down 19% on the same time a year ago, driven by Red Sheds and Noel Leeming divisions.
The Warehouse reported the lower adjusted after-tax profit result was largely a result of softer trading performances in the Red Sheds and Noel Leeming.
''The trading performance was impacted by a late start to summer seasonal trading and cycling of the Digital Switch Over, affecting sales in the entertainment and consumer electronics categories,'' it said.
The result was also negatively affected by several, planned, one-off non-recurring costs including rebranding of Noel Leeming and Torpedo7.
Red Shed second-quarter trading had been affected by a cool spring and a late start to summer, which need extra promotion and discounting.
There was a strong sales recovery from Boxing Day through January, but it was not enough to offset the softer November/December period, it said.
Mr McIntyre said it was expected The Warehouse would reduce its dividend guidance from a minimum of 19c per share to 16c, but future dividend guidance was going to be an important aspect of trading updates.
The Warehouse
Six months' trading to January 25
• Revenue: up 1.9% to $1.44 billion.
• Operating profit: down 18.7%, from $70 million to $56.9 million.
• Earnings before interest and tax: down 25.5%, from $85 million to $63.3 million.
• Profit after tax: down 26.2%, from $58.6 million to $43.2 million.
- SOURCE: THE WAREHOUSE
