The Warehouse Group has posted an $11.2 million net profit after tax for the 2026 financial year, staging a recovery from a $2.8 million net loss recorded in the previous financial year, according to the company’s financial results. Operating profit climbed to $22.6 million from $1.3 million, while the gross profit margin increased by 40 basis points to 32.6%. Reported sales across the group dropped 1.9% to $3 billion on a 53-week basis compared to the previous financial year, though sales rose 0.4% on a comparable 52-week same-store basis.
Noel Leeming and Warehouse Stationery Drive Earnings
Noel Leeming led the group’s financial performance, generating an operating profit of $21.8 million, up from $11.7 million in the previous financial year. Warehouse Stationery also increased its profit, rising to $15.9 million from $8.2 million.
Meanwhile, the group’s flagship red shed brand, The Warehouse, remained loss-making but narrowed its losses. The brand reported an operating loss of $7.5 million, an improvement from the $12.2 million loss recorded previously. Group chair John Journee stated that the company achieved meaningful progress through internal actions rather than favorable market conditions.
“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,” Journee said. The board declared no final dividend for investors.
Cost Reductions and Balance Sheet Improvements
The group’s cost of doing business fell by $29.8 million to account for 31.8% of sales, marking a 40-basis-point improvement driven by stricter inventory management, stronger buying discipline, and a higher proportion of full-price sales. Operating cash flow reached $193.5 million, an increase of $121.2 million, while capital expenditure rose to $21.1 million from $12.4 million, directed primarily toward store investments.
Net debt decreased to $17 million, down from $96.1 million in the 2025 financial year. Chief executive Mark Stirton stated that internal changes are gaining traction across the business.
“We’re buying better, managing inventory more effectively, improving our ranges and pricing, and running the business with greater discipline,” Stirton said. He added that the company is determined to restore The Warehouse as New Zealanders’ primary retail choice.
Retail Market Outlook for the 2027 Financial Year
Sales in the opening weeks of the 2027 financial year remained broadly aligned with the prior year. Stirton noted that retail conditions will stay challenging due to subdued consumer confidence and economic growth, forcing the retailer to focus on controllable factors.
“We can’t control those factors, so we’re concentrating on improving the areas within our control and delivering a better result regardless of market conditions,” Stirton said. The company plans to maintain lower costs and improve customer value through relevant product ranges and effective pricing.
Retail Operations Background
Did you know? The Warehouse Group operates three distinct retail brands across New Zealand: its namesake general merchandise red sheds, Noel Leeming technology stores, and Warehouse Stationery outlets.
Frequently Asked Questions About The Warehouse Group Results
What was The Warehouse Group net profit for the 2026 financial year?
The group reported a net profit after tax of $11.2 million, bouncing back from a $2.8 million net loss in the previous financial year.
Which retail brand contributed the most to the profit?
Noel Leeming generated the highest operating profit at $21.8 million, followed by Warehouse Stationery at $15.9 million.
What caused the margin growth?
The company attributed margin growth to stronger buying and retailing discipline, improved product ranges, tighter inventory management, and a higher proportion of full-price sales.
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