New Zealand’s The Warehouse Group is upbeat about the recent performance of its Warehouse Stationery. 

 

The Warehouse Group (TWG) has said it is using the learnings from the strong H1 performance at its Warehouse Stationery unit at its other retail banners.

 

Warehouse Stationery grew revenue by 5.7 per cent to NZ$116.1 million in the first six months of the current financial year. After excluding the impact of timing differences for the back-to-school period, this translated to like-for-like store sales growing by 1.8 per cent, with standalone store foot traffic increasing 1.8% and conversion improving by 1.4 per cent.

 

TWG said Warehouse Stationery saw growth across all categories, with units sold up by 0.6 per cent and average selling prices increasing by 1.8 per cent. 

 

Gross profit margin jumped by 170 basis points, reflecting price resets, improved stock control and lower clearance activity. As a result, operating profit more than trebled to NZ$8.1 million, with operating margin surging by 480 basis points to seven per cent.

 

The stationery unit was described as the “standout performer” by TWG management during this week’s earnings conference call. 

 

Group CEO Mark Stirton added: “As our smallest brand, it has been the fastest to begin turning around. Our focus now is on applying those same learnings at scale in The Warehouse as we continue the broader turnaround.”

 

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