The Warehouse Group down on first quarter sales

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Photo: RNZ / Nate McKinnon

Large retailer The Warehouse Group’s first quarter sales are down 6.7 percent on the year earlier.

The group reported total sales of $713.3 million in the first quarter ended October, with sales down in all retail brands.

The group’s first quarter gross profit fell 1.6 percent on the year earlier to $243.4m, though gross margins improved by 180 basis points year-on-year to 34.1 percent from 32.3 percent, as a result of an improvement in the cost of goods sold.

Sales down across the board

The Warehouse Red Shed sales fell 4.9 percent on last year’s first quarter.

Warehouse Stationery sales fell 4 percent, Noel Leeming was down 5.1 percent and Torpedo7 sales fell more than 25 percent.

Chief executive Nick Grayston said Torpedo7 sales had not recovered as well as hoped, and the group’s second quarter sales remain uncertain.

“Torpedo7 has not made the progress we’d hoped to see. We have a critical quarter ahead as we focus on driving its business performance recovery,” he said.

However, he said the company was well positioned for the second quarter, which included Black Friday, Christmas trading and the peak summer sales period.

“Trading conditions for the important second quarter remain uncertain, with a new incoming government, interest rates remaining high and cost of living challenges,” Grayston said.

“We remain committed to providing our customers with value while managing our costs to drive profitable results.”