Warehouse Group ( (WHGPF) ) has released its Q4 earnings. Here is a breakdown of the information Warehouse Group presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The Warehouse Group is a leading New Zealand retail company operating three iconic brands: The Warehouse, Warehouse Stationery, and Noel Leeming, offering a diverse range of products from homeware to electronics.
In its 2025 financial year, The Warehouse Group faced significant challenges due to a tough economic environment, resulting in a reported net loss after tax of $2.8 million. Despite a 1.6% increase in group sales to $3.1 billion, the company experienced a decline in operating profit to $1.3 million from $28.9 million in the previous year, primarily due to a decrease in gross profit margin and increased promotional activities.
Key financial metrics indicate that while group sales saw a slight increase, the gross profit margin fell from 33.6% to 32.2%. The company also reported a decrease in online sales to 6.7% of total sales, and a significant reduction in capital expenditure to $12.4 million from $39.0 million in the previous year. The leadership team has been reinforced with new appointments aimed at improving execution and financial discipline.
Looking ahead, The Warehouse Group remains focused on restoring profitability and positioning itself for sustainable growth. The company is committed to improving financial performance through better cost management, strategic investments, and enhancing customer experiences across its brands.