The Warehouse Group (TWG) has posted a full year profit warning that will see earnings slump by up to $61.4 million.
The Group is blaming increasingly subdued consumer demand compounded by a mild winter resulting in lower than anticipated sales.
Interim CEO John Journee said: "Retail across New Zealand is under pressure, and we are no exception. Market conditions and cost of living pressures have continued to be challenging into our fourth quarter and we expect these conditions to continue through to our year end."
The Group - which includes The Warehouse, Warehouse Stationery and Noel Leeming - expects full year sales to be down by 6-7 percent. That means full year earnings could be in the range of $22 million to $30 million, compared to $83.4 million for the previous year.
"We are taking decisive action internally to address areas we can improve. We are exercising tighter cost control and we have a laser focus on trading our core brands, The Warehouse, Warehouse Stationery and Noel Leeming," said Journee in a statement to the NZX.
TWG announced plans to reshape its business around its three core brands which included cutting six group executive leadership roles. They have been replaced with five new retail leadership roles.
The company has already sold off the outdoor equipment brand Torpedo 7 for a $1 to Tahua Partners.
The Group will report its full year results for 2024 on September 26.
