The Warehouse Group's first half revenue and profit has been hit by Covid-19 restrictions.
Auckland were closed for 84 days, or 46 percent of its normal trading days, but online sales increased 68 percent over the first half. Photo: RNZ / Nate McKinnon
The performance of the group, which includes The Warehouse, Warehouse Stationery, Torpedo7, Noel Leeming and TheMarket.com, was affected by the closure of Auckland stores for a total of 84 days, or 46 percent of its normal trading days, due to Covid-19 level 4 and level 3 lockdowns.
Overall the group's nationwide stores, excluding Auckland, were closed for 23 percent of normal trading days.
Key numbers for the six months ended January compared to a year ago:
- Net profit $50.4m vs $55m down 4.3%
- Revenue $1.73b vs $1.81b down 8.2%
- Gross profit $599.6m vs $655.4m down 8.5%
- Gross profit margin fell 150 basis points to 34.7%
- Interim dividend 10 cents per share
"We've had two quite distinct quarters - the first quarter being impacted significantly by a large number of our stores being closed and the second quarter with record sales over the Christmas and summer trading period," chief executive Nick Grayston said.
Online sales increased 68 percent over the first half, with the click and collect service increasing 79 percent.
Margins were affected by disruptions to the supply chain, with higher ocean freight charges and the online product mix, versus in store shopping.
"It's another reminder of how challenging the current environment is," Grayston said.
"Looking ahead we are optimistic, but the remainder of FY22 will not be without bumps.
"Ongoing uncertainty created by Covid-19 and the war in Ukraine remain significant impacts for the global economy and our own.
"Shipping and freight costs as well as inflation are also contributing factors for New Zealand."
The company said it would not provide full year guidance, given the ongoing uncertainty and disruptions.