New Zealand's Warehouse Group returns to profit in FY26

Warehouse

29/09/2026 20:42

Overview
New Zealand retailer's FY26 sales fell 1.9% but rose 0.4% on comparable 52-week same-store basis
Net profit after tax rose to NZ$11.2 mln from a loss in FY25
Company improved gross margin and cut net debt to NZ$17 mln

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
MARGIN IMPROVEMENT - Co said gross profit margin increased 40 basis points to 32.6%
COST REDUCTION - Co reduced cost of doing business by NZ$29.8 mln, improving ratio to 31.8% of sales
CASH FLOW - Operating cash flow improved by NZ$121.2 mln to NZ$193.5 mln

Company press release: ID:nNZW9xJ2ys

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Profit After Tax
 
NZ$11.2 mln
 
FY Gross Margin
 
32.6%
 
FY Net Debt
 
NZ$17 mln
 
FY Operating Cash Flow
 
NZ$193.5 mln
 
FY Sales
 
NZ$3 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Warehouse Group Ltd is NZ$0.82, about 30.2% above its September 29 closing price of NZ$0.63
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Sept 29 - New Zealand sees smaller budget deficit before election
Sept 28 - New Zealand's Hallenstein Glasson full-year sales up on Australian dollar, digital sales strength 
Sept 28 - New Zealand reduces bond program for next four years

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)