20 Jun 2014

Warehouse lowers profit forecast

2:35 pm on 20 June 2014

The Warehouse says it expects its annual profit to be lower than it was predicting back in March.

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Photo: PHOTO NZ

Chief executive Mark Powell said his company's net profit for the year will come in between $59 and $62 million, down from the previous forecast of between $67 and $71 million.

The Warehouse shares fell 25 cents, or more than 7.5 percent, to $3.07 on the news.

Mr Powell said Noel Leeming, Warehouse Stationery and Financial Services were all performing in line with expectations.

However, the company's flagship Red Sheds and Torpedo7 businesses weren't performing well, he said.

Chairman Ted van Arkel said he believed the company was facing a particularly difficult seasonal trading environment but the company had a brighter long term outlook.