The Warehouse Group blames $2.8 million loss on 'challenging' economy

The Warehouse Group today announced its financial results for the 2025 financial year, posting a $2.8 million net loss after tax.

In a statement released this morning, the group said The Warehouse delivered sales of $1.8 billion, Warehouse Stationery sales were down 2.5% to $226.0 million and Noel Leeming sales were up 3.3% to $1.0 billion.

Earlier this year, the company warned of financial headwinds in its preliminary financial report.

Today, it said group sales were $3.1 billion, up 1.6% on FY24, flat on a 52-week same store basis.

The Warehouse Group chairperson Dame Joan Withers said "economic and retail conditions in New Zealand remain extremely challenging".

"Unemployment and inflation remain comparatively high, and consumer confidence is down, putting further pressure on discretionary spending and intensifying retail competition," she said.

Withers said the business was operating "in a tough and unpredictable environment".

While we are seeing early signs of improvement, we remain cautious about the pace of recovery. The Warehouse Group has taken the right steps to reset its foundations, and the Board is confident in the leadership and direction now in place.”

Chief executive Mark Stirton, who took on the role in August 2025, said FY25 was a "reset" of how the Group operated.

"We simplified our organisational structure and returned to a brand-led model with retail ways of working. We also reset our pricing, improved our product range, and controlled costs and capital expenditure," he said.

Looking ahead, Withers said the Group entered FY26 with "a clear focus on disciplined delivery".

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Margin recovery will be driven by improved sourcing, tighter inflow margin control, and disciplined inventory management. The Warehouse will target growth in higher-margin categories including apparel, health and beauty, home and toys."

The Board elected not to declare a final dividend for FY25, given the Group's financial performance.