The Warehouse Group has announced its half-year results for the 26 weeks ending the 1st of February 2026.
Despite a challenging retail environment and ongoing cost-of-living pressures on households, The Warehouse Group recorded sales of NZD 1,612.1 million, improving profitability through disciplined cost control and working capital improvements, driven by lower inventory levels.
Chair John Journee said the Board saw clear evidence that the Group is on the right path, while recognising the work ahead.
Consumer confidence is volatile, and retail conditions remain extremely competitive. Against that backdrop, this is a solid result.
“We have held sales and improved profitability, while continuing to rebuild the foundations of good retailing. New leadership and a new operating model are now in place, and we are seeing the benefit through stronger cost discipline and execution. There is still more to do, and it will take time to restore sustainable returns.”
Black Friday, Christmas and Back to School events performed well across the half, while severe weather events in January impacted retail spending overall and affected summer seasonal and outdoor categories at The Warehouse.
Gross profit margin improved in Warehouse Stationery and Noel Leeming, while The Warehouse continued to face margin pressure.
Group gross profit margin declined in the first quarter, driven largely by The Warehouse, where aged and seasonal stock were deliberately cleared, resulting in softer sales in higher‑margin categories and freight pressures. Positively, gross profit margin momentum grew in the second quarter, up 30 basis points, and the quality of sales improved.
In November 2025, the Group shared its aim to reduce costs to below 31 percent of sales. While progress has been made, the cost of doing business as a percentage of sales is expected to moderate on a full-year basis, given the traditionally larger first-half sales. The Group will continue its cost reset programme by simplifying the business, reducing overheads and controlling spend.
Group Chief Executive Officer Mark Stirton said disciplined cost control was a key driver of the improved result.
Tight cost control flowed through to a good improvement in profitability.
"I want to thank our 10,000 team members across the country who are making a real difference for our customers every day as we reset the business.”
Store footprint growth - The Warehouse and Noel Leeming Mangawhai
The Group also announced that The Warehouse and Noel Leeming will open new Mangawhai stores in mid-2027. This will be the first new The Warehouse store since the opening of The Warehouse Wānaka in 2023.
Stirton said the Group’s store network remains a key strength and that Mangawhai is a fast-growing area, with strong demand from families for great-value shopping, both residents and holidaymakers.
Brand performance
The Warehouse
The Warehouse delivered sales of NZD 949.5 million, up 0.5 percent on FY25 H1, with like-for-like same-store sales up 1.2 percent.
Store foot traffic increased 0.5 percent and conversion, the number of visitors who end up making a purchase, improved 1.0 percent. Peak trading events, including Black Friday and Christmas, performed well.
The Warehouse saw category revenue growth across Health & Beauty up 3.7 percent, Toys up 3.2 percent, and Leisure up 2.7 percent, as customers shopped for gifts, summer and holiday activities.
Health and Beauty, an increasingly important category for the brand, continued to gain traction following improvements in visual merchandising and presents a significant opportunity. Gross profit margin declined amid softer sales in higher-margin categories, higher freight costs, and increased provisions for aged stock.
“We’re stepping up the work to revitalise our Home and Apparel offer, while remaining sharp on value for customers. We are also investing in our store experience, including visual merchandising upgrades, and remodelling plans are underway for our first new flagship store format.”
Warehouse Stationery
Warehouse Stationery delivered sales of NZD 116.1 million, up 5.7 percent on FY25 H1. The result is aided by the timing of the Back to School trading period, which falls more into this half-year. Like-for-like same-store sales increased 1.8 percent.
Standalone store foot traffic increased 1.8 percent and conversion improved 1.4 percent, with sales growth across all categories. Gross profit margin increased significantly, reflecting better retail execution through price resets, improved stock control, and lower clearance activity, which drove gross profit growth faster than sales.
Stirton said Warehouse Stationery has played an important role in proving the Group’s approach.
“As the smallest brand, Warehouse Stationery allowed us to move and apply changes faster. Our focus now is on applying the same learnings at scale in The Warehouse as we continue the broader turnaround.”
Noel Leeming
Noel Leeming delivered sales of NZD 542.2 million, down 1.2 percent on FY25 H1. On a like-for-like same-store sales basis, sales decreased 1.3 percent. In FY25 H1, the closure of Flybuys in December 2024 led to an increase in sales as customers redeemed points before the programme ended.
Peak trading events, including Black Friday and Christmas, performed well, while Boxing Day was softer, in line with broader retail conditions. Sales growth was achieved in cellular, computers and white goods.
A strong focus on strengthening profitability in a highly competitive market achieved growth in gross profit margin, and combined with disciplined cost control, delivered an operating profit of NZD 12.9 million, up 52.0 percent on FY25 H1, and higher than FY25 full year.
“The improvement in margin and profit is excellent to see and evidence that the Noel Leeming team are doing the retail basics well while building a strong service and commercial offering.”
Looking ahead
Trading in the first six weeks of the second half has resulted in sales down 0.2 percent on the same period last year. Chair John Journee said the economic recovery remains slow and, amid ongoing global volatility, trading conditions continue to be challenging.
“International conflict has created further uncertainty for New Zealanders. Rising fuel prices and potential disruption, along with congestion across key shipping routes, are expected to push freight costs higher in the period ahead,” added Journee.
“While the full impact on the supply chain and consumers remains uncertain, management is closely monitoring conditions with planning underway. We are working with external stakeholders to seek to mitigate and manage these pressures as the situation evolves.”
The Group is acting decisively on what it can control. In the second half, it will continue the work to turn around performance.
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