The Warehouse Group Loses Money Again, But Sees Hope for the Future
Auckland, NZ — The Warehouse Group, the company that owns The Warehouse (the ‘red sheds’), Noel Leeming, and Warehouse Stationery stores, has reported losing money for the whole year, but the loss is much smaller than last year. The company says things got better in the second half of the year, and they are now focused on fixing their business.
Key Financial Update (Year Ended August 3)
The company’s overall health is still not where it should be, but they are making a big effort to improve.
| Key Numbers (Compared to Last Year) | Result this Year (FY25) | Result Last Year (FY24) | Notes |
| Total Net Loss (Money Lost) | $2.76 million loss | $54.2 million loss | The loss is much smaller this year. |
| Total Sales | $3.09 billion (Up 1.6%) | $3.04 billion | Overall sales went up a little bit. |
| Basic Profit (Underlying Profit) | $1.3 million profit | $28.9 million profit | This profit dropped a lot compared to last year. |
| Gross Profit Margin (How much money they keep from sales) | 32.2% (Down from 33.6%) | 33.6% | They are making less money on each item sold, partly because of lower prices and sales. |
Business Performance Across Stores:
- The Warehouse (‘Red Sheds’): Sales went up by 1.4% to reach $1.8 billion.
- Noel Leeming: Sales saw the biggest increase, up 3.3% to hit $1.0 billion.
- Warehouse Stationery: Sales went down by 2.5% to $226 million.
The New Plan to Turn Things Around
Mark Stirton, who became the new Group Chief Executive in August, said the company has “reset how we operate.” He was the Chief Financial Officer before taking the top job.
The company is making major changes, including:
- New Structure: Changing how the company is organised to focus on each brand (The Warehouse, Noel Leeming, etc.).
- Sharper Prices: Making prices more competitive to attract customers.
- Better Products: Improving the range of products on offer.
- Cost Control: Spending less money and controlling stock better. They have significantly cut spending on new projects and capital.
Chair Dame Joan Withers said that while the business is still facing a “very difficult year,” the company is strongly committed to fixing things. She noted that New Zealand’s economy is still tough, with people not spending as much money.
Mr. Stirton agreed that the start of the new financial year (the last seven weeks) is still difficult, with sales and profit levels being about the same as last year. However, the company believes the changes they are making, which include a new partnership for IT services expected to save $40 million over five years, will lead to growth in the long run.
