3 Feb 2012

Warehouse shares fall after it cuts profit forecast

8:03 pm on 3 February 2012

Shares in the Warehouse Group have fallen more than 3% after the retail giant cut its profit forecast as market conditions squeeze margins.

The listed retailer says despite buoyant Christmas trading, it now expects net profit to be between $62 and $66 million, down from an earlier forecast of $70 million.

Total sales in the three months to January rose 4.2% compared with the same period last year, with same store sales up more than 3%.

The Warehouse's chief executive, Mark Powell, says trading conditions were challenging and it was disappointing to reduce their expectation of what profit would be for this year.

But he says the Warehouse Group is still on track to meet underlying profit targets of $80 million when it reports its full year earnings result in July.