10 Sep 2010

The Warehouse profit slips

1:05 pm on 10 September 2010

The Warehouse's full year profit has slipped, as consumers watch their spending.

The country's largest listed retailer made $60.2 million in the year to the beginning of August, down more than a fifth on the previous year.

Once tax charges and other one-off adjustments are stripped out, underlying profit slipped almost 2.5% to just over $83 million.

Sales at Warehouse stores open more than a year fell by more than 2%, while sales at Warehouse Stationery stores rose almost 8%.

Warehouse chief executive Ian Morrice says trading conditions have been difficult and consumer spending remains subdued and patchy.

Mr Morrice says growth in the footwear, sporting, jewellery, health and beauty categories was offset by a continued decline in the CD and DVD market.