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

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news