12 May 2017

The Warehouse sales rise amid tough trading conditions

12:52 pm on 12 May 2017

The Warehouse Group's third quarter sales are up slightly, despite a difficult trading period with mixed results across its brand stores.

The Warehouse shop in Auckland

The Warehouse Group is New Zealand's largest retailer. Photo: 123RF

New Zealand's largest retailer's sales rose 1.7 percent to $683.5 million, in the three months ended in April - an increase of just $11.3m over last year.

A 5.7 percent increase in Noel Leeming's sales accounted for almost all of the group's overall increase.

The Red Shed sales, which made up more than half of group's total, rose 0.6 percent, with strong clothing sales offset by increased competition over Easter, and a fall in home and entertainment sales.

Warehouse Stationery's sales fell more than half a percent, while Torpedo7 was down 1.1 percent.

Total online sales rose 13 percent, despite softer sales from Torpedo7's online sales in Australia, which were being reorganised.

Group chief executive Nick Grayston said it was a positive result considering the changes underway within the business.

"The varied performance across the brands highlights that we have a lot of work to do as we position the business to face the competitive challenges ahead of us".

He said the group's full year result was tracking to expectations.