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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news