Latest news with #JohnJournee
RNZ News
30-06-2025
- Business
- RNZ News
Warm weather cools Warehouse Group's profits
Photo: SUPPLIED Warm weather has melted The Warehouse Group's profit forecast. The company has revised its pre-tax profits lower to a range of a $5 million loss to a $5 million profit for the year ending 3 August. The company - known for its Red Sheds, Stationary and Noel Leeming brands - blamed low consumer confidence and a delayed winter for impacting winter sales, which had forced it into heavy discounting. Nonetheless, interim chief executive John Journee said sales strengthened as soon as colder weather arrived. "Now that the cold has set in, our sales momentum has returned with Q4 to date sales ahead of the same period last year," he said. Despite the "encouraging" news, Journee said "the current market conditions are impacting margins", leading to the earnings downgrade. The group said the timing of New Zealand's economic recovery remained uncertain , weighing on consumer discretionary spending. The company will release its full-year results on 2 October. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
08-05-2025
- Business
- RNZ News
Warehouse sales improve but profits down after persistent discounting
Interim chief executive John Journee says the results show the team's dedication to winning back customers. Photo: SUPPLIED The Warehouse says it's seeing encouraging signs as sales improved in the third quarter as it offered discounts, but that's led to a lower profit . Key numbers for the 13 weeks ended April 27 compared with a year ago: Interim chief executive John Journee said its February sales were strong, while March and April were softer , but were better than the same period last year. Persistent discounting in the retail sector, combined with mark-downs to clear seasonal merchandise, lowered The Warehouse Group's gross profits and margins. "This positive headway is a direct result of our team's dedication to winning back customers with enhanced products and value," Journee said. "New on-trend homeware and apparel ranges, and better value everyday essentials are resonating well with customers." Its Red Sheds quarterly sales rose 1.9 percent from a year ago to $415.9 million, Warehouse Stationery sales fell 3.3 percent to $58.8m, and Noel Leeming sales improved 4.5 percent to $234.9m. However, Journee said a warmer autumn had led to a slow start to winter merchandise sales. "If sustained, [it] may negatively impact our planned Q4 performance." The Warehouse expected consumer demand to remain subdued in 2025 as tight economic conditions and global uncertainty eroded consumer confidence. The company left its second half guidance unchanged. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
