New Zealand department store chain The Warehouse Group has reported a 3.3 per cent rise in first half net profit.
The board of directors at the listed company, which sells discount products and fashion clothing for men, women and children, has today announced a net profit after tax of $54.0 million, compared to $52.3 million last year.
Adjusted net profit after tax for the period was $46.7 million, compared to $53.0 million last year, down 11.9 per cent.
In announcing the result, chairman Graham Evans says the strategic direction set out last September has already started to have a 'positive impact'.
“The Board understand that the scale of change required to reverse long term trends is significant and building long term sustainable growth in profits will take time,” Evans said. “This result needs to be considered in that context.”
Warehouse reported sales of $835.7 million, up 3.4 per cent compared to the first half last year. Same store sales were up 2.7 per cent for the half and up 3.1 per cent for the second quarter, with an improving trend each month which continued in February.
Operating profit for the half year was down 16.1 per cent to $62.1 million.
Subject to any material change in anticipated trading conditions, the directors expect adjusted net profit after tax for the full year to be between $62.0 million and $66.0 million.