New-Zealand based discount clothing retailer The Warehouse Group has reported a 8.9 per cent drop in first half net profit after tax, citing soft retail conditions as the cause.
The company, New Zealand's largest listed retailer, reported net profit after tax at $38.9 million, for the half year ended January 30, 2010, down from $42.1 million in the same period last year.
According to the half yearly results, the company's sales declined approximately 1.2 per cent to $666.2 million from $764.0 million in 2010. Operating profit was also down 5.2 per cent to $57.9 million.
The Warehouse Group attributed the profit loss to difficult trading conditions, constrained retail spending and a sector that is highly promotionally driven.
However, the company reported an increase in online sales, up 95 per cent off a low base, and recently opened four additional stores, in Rolleston, Riccarton, Kerikeri and Gisborne.
As reported in on Ragtrader.com.au on Feb 8 2011, The Warehouse Group will also welcome Mark Powell, currently the head of the company's Warehouse Stationery arm, as the new group chief executive officer in November 2011. He will replace Ian Morrice who is currently in the role.
Figures have been converted from New Zealand dollars to Australian dollars. (1 NZD = AUD 0.73)