The Warehouse Group, which includes brands such as The Warehouse, Noel Leeming, and Warehouse Stationery, has reported a significant financial loss following one of its most challenging years.
The company was heavily impacted by the sale of its outdoor goods brand, Torpedo7, for just $1, resulting in a $60 million loss. Even excluding this one-off event, adjusted profits were down from the previous year, with sales across its brands dropping due to weak consumer demand in New Zealand’s difficult economic climate.
Chair Dame Joan Withers acknowledged the financial performance was “not acceptable” and emphasized the company’s commitment to regaining stability.
Interim CEO John Journee admitted to strategic missteps, such as holding onto underperforming assets like Torpedo7 for too long and losing focus on product offerings that resonate with Kiwi families.
Sales fell across all brands, with The Warehouse down 5.3% to $1.8 billion, Warehouse Stationery dropping 6.7%, and Noel Leeming declining 5.3%. Despite a slight recovery in market share in the early weeks of FY25, the company remains cautious about future retail spending and expects pressure on profits as they continue to reset their product offerings.
We are in the start of a Very Great Depression, & no one has any expendable income to spend at The Warehouse (offering somewhat sub-standard Grade B Goods anyway…) or any other store!