NZX Media Release FY26 Annual Result

The Warehouse Group reports strong profit growth in FY26

Summary for the 52 weeks ended 2 August 2026:

• Reported sales were $3.0 billion, down 1.9% on a 53-week FY25, up 0.4% on a comparative 52-week same-store basis
• Group gross profit margin up 40 basis points to 32.6%
• Cost of doing business reduced by $29.8 million to 31.8% of sales, an improvement of 40 basis points
• Operating profit2 (EBIT pre-NZ-IFRS 16) increased to $22.6 million from $1.3 million in FY25
• Reported net profit after tax increased to $11.2 million from $2.8 million net loss after tax in FY25
• Operating cash flow improved by $121.2 million to $193.5 million, capital expenditure increased to $21.1 million from $12.4 million in FY25 with investment primarily directed to stores
• Net debt reduced to $17.0 million from $96.1 million in FY25 • No final dividend has been declared for FY26

The Warehouse Group today announced a strong recovery in profitability, with comparable store sales holding broadly steady despite continued pressure on discretionary spending. Gross margin improved and costs reduced as a proportion of sales, while stronger cash flow supported increased investment in store upgrades and foundations for future growth.

Chair John Journee said the result demonstrates that the actions taken to date are delivering results.

"Despite a difficult retail environment, The Warehouse Group made meaningful progress during the year. Sales were steady on a comparable basis, profitability improved, and the business finished the year in a much stronger position.

“Importantly, this progress was driven by actions taken within the business rather than an improvement in market conditions, creating a stronger foundation for the next stage of our recovery. While the Board is pleased with the progress made, materially improving profitability remains our primary ambition."

Group sales were $3.0 billion, down 1.9% on the prior year which included an additional week of trading. Sales increased 0.4% on a comparative 52-week same-store basis.

Consumer confidence fluctuated throughout the year. Confidence improved through the first half as interest rates eased, signalling a possible recovery. However, international conflict, higher fuel prices and renewed pressure on household budgets weighed on consumer sentiment later in the year. Customers remained value conscious with average selling prices down 1.4%. Across the brands, customers spent more per visit and purchased more items, with average basket value up 0.5% and units sold up 1.8%.

Group gross profit margin increased 40 basis points to 32.6%, while cost of doing business reduced 40 basis points to 31.8% of sales. It was the first year since FY21 that gross margin improved while costs reduced as a percentage of sales.