You'd think that with WHS sales being up more than 25% in Q! they be rushing out the announcement
Needs some good news
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You'd think that with WHS sales being up more than 25% in Q! they be rushing out the announcement
Needs some good news
https://www.nzx.com/announcements/402187
Record first quarter sales at The Warehouse as New Zealanders seek value
FY23 First Quarter Highlights:
• Group sales for the 13 weeks to 30 October 2022 (“FY23 Q1”) were $764.7 million, up 21.2% compared to FY22 Q1 and up 12.3% compared to FY20 Q1 (being the last pre-COVID comparative period).
• Record first quarter sales at The Warehouse of $414.6 million, up 39.0% on FY22 Q1, as customers shopped for value with grocery sales up 76.2% and homeware sales up 32.2%.
• Foot traffic increased 61.4% across all brands in FY23 Q1 compared to FY22 Q1 as customers returned to store.
• Group gross profit margin was 32.3% in FY23 Q1, reduced from 32.9% gross profit margin in FY22 Q1.
• MarketClub membership reaches 800,000 members, delivering value to New Zealanders every day.
The Warehouse Group Limited (“the Group”) today reported strong total Group sales of $764.7 million for the FY23 first quarter ending 30 October 2022, up 21.2% on the same quarter in FY22, and up 12.3% on the same quarter in FY20 (being 13 weeks to 27 October 2019 and the last pre-COVID comparative period). FY22 Q1 was heavily impacted by COVID-19 lockdowns from 18 August 2021, including Level 4 for two weeks New Zealand-wide and five weeks in Auckland, with Auckland remaining in Level 3 for the remainder of the quarter.
Only up 21% on pcp
Just as well for the Red Sheds and to a certain extent Warehouse Stationary - Noel Leeming and Torpedo7 must be a bit of a worry.
On their own measures they have lost market share .... overall retail sales in NZ did better than this
Never mind grocery sales up 76% (wonder what $ base was
Market will like the big numbers ....and on an up day
Gross Margin down 0.6% points
If that carries through for the full year bottom line impact of $20m .... hope they fix that pretty soon
Yep, everybody was excited when retailers (and others) margins sky rocketed through early stages of covid and said the high margins were sustainable
Of course they weren't ....and many are seeing margins drift slowly back (revert) to historical levels
Even the smart ones will see this but they will at least end up slightly higher than where they were a few years ago
"customers shopped for value with grocery sales up 76.2%"
Low margin sales increasing will lower overall margin.
No surprises here.
Also remember increasing shelf space for low margin products reduces space for higher margin products.
I found low margin products took more work/time/staff than high margin products.
I always remember a coffee bar next to me that was more like a dairy chips,fags everything.Taken over by a baker who got rid of the lot, and only sold what he produced.Customer count dropped for a short time,then took off.He made a lot of money where the previous owner did not.
They have cherry picked some highlights here.
"Torpedo7 recorded sales of $37.4 million. This represented growth of 9.4%
compared to FY22 Q1 and sales growth of 57.1% compared to FY20 Q1
(pre-COVID), with three new stores opening in the last 12 months in Petone,
Invercargill and Whangarei taking total stores to 24"
The fy20 q1 figures didn't have several stores Napier, Tauranga, Westfield, Northlink, Rotorua in them , so comparing 24 stores turnover to the base of 16 you would expect it to be higher, but how it reads makes it seem amazing.
TheMarket.com continues to grow with 47 million online sessions in the last
12 months - up 8% from the preceding 12 months. TheMarket.com range has
continued to expand with 5 million active products and over 6,700 brands on
offer from over 1,100 merchants. The launch of Marketplace onto
www.thewarehouse.co.nz is an exciting new channel for TheMarket.com that
will drive ongoing Gross Merchandise Value growth this year.
Are they still measuring the Market on visits & products? Surely they need to start advising $$, Margin & Bottom line. 8% growth in the last 12 months when the underlying loss is massive is only going to mean an even bigger hit to bottom line this coming year.
You are a tough man to please ...
But anyway - good to see that the Red sheds and Torpedo 7 are the growth leaders. (nearly) double digit growth even when compared to Pre-Covid times.
Attachment 14301
Not sure why they still bother with the Blue sheds (or blue isles these days) - office stuff is boring.
Noel Leeming - probably worthwhile to drop as well and integrate into the red sheds ...
Noel Leeming sales up 3.3% in Q1
Aug/Sep/Oct period (NL) slightly different from Jul/Aug/Sep period but +27% v 3.3% is a HUGE.difference. Retail data would suggest that 3months to Oct saw higher growth than 3 months to Sept.
Something not working for Noel Leeming?