Q1 sales down 10 per cent  with ‘bumpy ride’ ahead.

 

New Zealand’s The Warehouse Group, parent company of Warehouse Stationery, reported an 8.2 per cent drop in first-half profit as its stores were disrupted by Covid-19 lockdowns.

 

Net profit fell to NZ$50.4 million in the six months to January 30, from NZ $55 million a year earlier, the company said in a statement to the NZX. 

 

Excluding the impact of restructuring costs and the repayment of the wage subsidy in the year earlier period, profit fell 57 per cent.

 

The company, which also owns The Warehouse, Noel Leeming, Torpedo7 and TheMarket.com, said its Auckland stores were closed for 84 days due to Covid-19 Level 4 and Level 3 lockdowns during the period, accounting for 46 per cent of

 

Auckland’s normal trading days. Outside of Auckland, its stores were closed for 23 per cent of their normal trading days.

 

Warehouse Stationery sales dropped 10.6 per cent in the six-month period.

 

The retailer didn’t provide full-year guidance, citing continued uncertainty in the trading environment.

 

“Looking ahead we are optimistic, but the remainder of (the 2022 financial year) will not be without bumps,” CEO Nick Grayston said.