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Warehouse Group
(WHS)
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Rating:51Neutral
Price Target:
$0.65
▼(-6.09% Downside)
Action:N/A
Date:10/05/26
Overall score reflects weak underlying financial quality (thin margins and elevated leverage) despite improved 2026 profitability and stronger cash generation. Technicals are broadly neutral with only modest momentum, while valuation appears fair rather than compelling given the earnings profile. Earnings-call commentary supports the score via clear turnaround progress and encouraging early FY27 trading, but with notable execution risks (loss-making core banner, aged inventory, and competitive pressures).
Positive Factors
Margin and profitability turnaround
The FY26 recovery shows that tighter buying, pricing discipline and cost control can improve earnings without relying on stronger consumer demand. Higher gross margin and lower operating costs create a more sustainable base for rebuilding profitability over the next several quarters.
Negative Factors
Flat-to-declining revenue and thin margins
A stagnant or shrinking revenue base limits operating leverage, while a net margin near zero leaves little buffer against weaker demand, markdowns or cost inflation. The recent return to profit is encouraging, but earnings remain too thin and volatile to provide durable protection.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and profitability turnaround
The FY26 recovery shows that tighter buying, pricing discipline and cost control can improve earnings without relying on stronger consumer demand. Higher gross margin and lower operating costs create a more sustainable base for rebuilding profitability over the next several quarters.
Read all positive factors
Warehouse Group (WHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$222.75M
Dividend Yield10.26%
Average Volume (3M)65.56K
Price to Earnings (P/E)21.4
Beta (1Y)0.33
Revenue Growth-1.92%
EPS GrowthN/A
CountryNZ
Employees9,589
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.03
Shares Outstanding346,843,140
10 Day Avg. Volume41,070
30 Day Avg. Volume65,560
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.64
Price to Sales (P/S)0.07
P/FCF Ratio1.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)$3.10B
Warehouse Group Business Overview & Revenue Model
Company Description
The Warehouse Group Limited, together with its subsidiaries, engages in the operation of retail stores in New Zealand. The company sells general merchandise, apparels, technology, appliance, and stationery products. The Warehouse Group Limited ope...
How the Company Makes Money
The Warehouse Group makes money primarily by selling products to consumers through its retail brands via in-store and online channels. Its core revenue stream is retail sales of merchandise (general merchandise and other product categories sold ac...
Warehouse Group Earnings Call Summary
Earnings Call Date:Sep 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 25, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with management highlighting a substantial turnaround in operating profit, a return to reported profitability, improved margins and costs, strong cash generation, lower net debt, better inventory productivity, and encouraging early FY '27 trading. However, the group remains in turnaround mode: The Warehouse is still loss-making, several comparable-sales measures declined, Noel Leeming faces competitive and top-line pressure, aged inventory remains elevated, no final dividend was declared, and management expects ongoing inflationary cost growth and continued uncertainty.Positive Updates
Stronger Group Earnings Despite Challenging Retail Conditions
Reported sales were just over $3 billion, down 1.9% due to the additional 53rd week in FY '25; on a comparable 52-week basis, sales were broadly flat, down 0.2%, while same-store sales increased 0.4%. Gross margin increased 40 basis points to 32.6%, cost of doing business reduced by $29.8 million or 3% to 31.8% of sales, and operating profit increased to $22.6 million from $1.3 million in FY '25.
Negative Updates
Difficult Consumer and Macroeconomic Environment
Management described FY '26 as another difficult year for New Zealand consumers. Unemployment reached its highest level since 2015, inflation increased 4.1%, real incomes declined, and the first OCR increase in 3 years added pressure to household budgets. International conflict also drove higher fuel prices, while discretionary spending did not experience a meaningful recovery.
Read all updates
Q4-2026 Updates
Positive
Negative
Stronger Group Earnings Despite Challenging Retail Conditions
Reported sales were just over $3 billion, down 1.9% due to the additional 53rd week in FY '25; on a comparable 52-week basis, sales were broadly flat, down 0.2%, while same-store sales increased 0.4%. Gross margin increased 40 basis points to 32.6%, cost of doing business reduced by $29.8 million or 3% to 31.8% of sales, and operating profit increased to $22.6 million from $1.3 million in FY '25.
Read all positive updates
Company Guidance
For FY ’27, trading in the first 8 weeks showed group sales “broadly in line with the prior year” and margin performance “ahead,” while the group remains cautious; getting cost of doing business below 31% of sales is “probably more” a “medium-term aspiration,” with costs expected to grow “more slowly than inflation” and “at a rate lower than inflation”; the 53rd week has an impact “in the vicinity of $15 million to $16 million,” some TCS benefits “won’t repeat next year,” and further cost benefits are expected into next year; inventory remains an opportunity, with “21%” still over 6 months aged, while reducing over-6-month inventory to “5%” from “15%” could turn stock turn to “5.5%”; CapEx levels will be higher, “lower than what a long-run average,” and not back to FY ’21, ’22, ’23 levels; and the November Investor Day will provide “longer-term financial aspirations” and greater clarity on the next “3 to 4 years,” including the intent to return to store growth at Noel Leeming.Warehouse Group Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
35
Negative
Cash Flow
63
Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.03B | 3.09B | 3.04B | 3.40B | 3.29B |
| Gross Profit | 320.82M | 312.81M | 1.02B | 1.14B | 1.16B |
| EBITDA | 196.79M | 197.04M | 112.85M | 230.95M | 268.80M |
| Net Income | 11.23M | -2.76M | -54.18M | 29.81M | 89.31M |
Balance Sheet | |||||
| Total Assets | 1.51B | 1.59B | 1.65B | 1.77B | 1.86B |
| Cash, Cash Equivalents and Short-Term Investments | 41.88M | 39.21M | 32.20M | 28.33M | 25.00M |
| Total Debt | 764.23M | 849.14M | 819.71M | 879.56M | 886.99M |
| Total Liabilities | 1.20B | 1.29B | 1.34B | 1.37B | 1.44B |
| Stockholders Equity | 312.05M | 299.37M | 309.55M | 402.07M | 421.91M |
Cash Flow | |||||
| Free Cash Flow | 174.07M | 59.72M | 146.59M | 99.09M | -6.55M |
| Operating Cash Flow | 193.51M | 72.32M | 185.87M | 214.18M | 105.42M |
| Investing Cash Flow | -19.40M | -12.44M | -43.65M | -85.11M | -113.23M |
| Financing Cash Flow | -171.43M | -52.88M | -138.35M | -125.74M | -127.72M |
Warehouse Group Technical Analysis
Positive
0.69
Price Trends
0.64
Positive
0.62
Positive
0.67
Negative
Market Momentum
>-0.01
Negative
58.38
Neutral
84.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:WHS, the sentiment is Positive. The current price of 0.69 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.64, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:WHS.
Warehouse Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $222.75M | 21.38 | 3.61% | 10.26% | -1.92% | ― | |
48 Neutral | $133.88M | -0.32 | -79.57% | 4.56% | 6.47% | -193.50% | |
45 Neutral | $8.83M | 20.98 | -17.64% | ― | 90.03% | -53.08% |
* Consumer Cyclical Sector Average
NZ:WHS
Warehouse Group
0.70
-0.08
-9.74%
NZ:KMD
KMD Brands Limited
1.91
-2.38
-55.51%
NZ:CCC
Cooks Coffee Company Limited
0.13
-0.08
-38.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.