Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Warehouse affirms guidance, sees growth in consumer spending

Warehouse affirms guidance, sees growth in consumer spending

Nov. 23 (BusinessDesk) - Warehouse Group, the country's biggest listed retailer, reiterated its forecast for this year's earnings to beat those in 2012, and sees signs of growth in consumer spending.

Chairman Graham Evans told shareholders at today's annual meeting that adjusted profit in the 2013 year will likely beat the $65.2 million and the retailer will update that guidance when it releases first-half earnings in March. Warehouse sees signs of growth in non-food retail sales and expects further improvement in the coming year.

"Having assessed a number of factors including the shorter-term impact of the group's strategic plan and reinvestment programme, the board is of the view that adjusted earnings for F13 are likely to be higher than achieved in F12," Evans said in speech notes published on the NZX. "We expect consumer spending in the non-food sector to continue improving over the next 12 months, but the extent of any underlying growth remains uncertain."

Warehouse increased first-quarter sales 1.9 percent to $377.3 million on the strength of its stationery unit. The retailer has finished the first year of a turnaround plan that aims to deliver a better shopping experience for customers via investment in its chain of stores. That's seen it develop new channels to distribute products, including a website offering customers discounts.

The shares were unchanged at $3.15, and have gained 5.7 percent this year. The stock is rated an average 'hold', based on eight analyst recommendations compiled by Reuters, with a median target price of $3.05.

The company's earnings will be "significantly influenced" by the January quarter, which includes the Christmas trading period, Evans said.

Other retailers have downplayed the prospects of strong Christmas trading, with children's clothing chain Pumpkin Patch this week signalling stores are still discounting their wares.

Evans said the board sees potential in Stephen Tindall's alternate director, Robbie Tindall, and has embarked on a mentoring role to develop his skills.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news