Warehouse Group Ltd. · NZX:WHS
Warehouse — Warehouse Group Ord New — FY2026 Earnings Presentation
33 slides from Warehouse's earnings presentation, Sep 29, 2026
Slide 1: 2026 Annual Results
2026 Annual Results 52 WEEKS ENDING 2 AUGUST 2026 1
Slide 2: Contents
Contents 1. Chair Update - John Journee 2. CEO Update - Mark Stirton 3. Financial Performance - Stefan Knight 4. The Year Ahead - Mark Stirton 5. Thank You - John Journee 6. Appendix - Additional Information 22
Slide 3: Chair Update
Chair Update John Journee Chair 3
Slide 4: Progress against the reset plan
CHAIR UPDATE Progress against the reset plan GROUP SALES GROSS MARGIN CODB3 OPERATING PROFIT4 FREE CASH FLOW5 NET DEBT $3,027.6m 32.6% 31.8% $22.6m $79.4m $17.0m (1.9%) on a 53-week FY25 +40 bps on FY256 -40 bps on FY256 vs $1.3m in FY25 vs ($45.2m) in FY25 from $96.1m in FY25 (0.2%) on a comparable
Slide 5: CEO Update
CEO Update Mark Stirton Group CEO 5
Slide 6: The market we traded through
MACROECONOMIC CONTEXT The market we traded through Consumer confidence improved through the first half of FY26 before falling due to international conflict and recovered towards the end of the financial year. Despite the weaker environment, Group earnings improved CONSUMER CONFIDENCE THROUGH FY26 ·
Slide 7: FY26 began to restore operating leverage and strengthened the balance sheet
GROUP PERFORMANCE FY26 began to restore operating leverage and strengthened the balance sheet Margin and cost discipline lifted earnings, while inventory management improved cash conversion PROFIT RECOVERY OPERATING LEVERAGE BALANCE SHEET $22.6m 32.6% GROSS MARGIN 31.8% CODB / SALES $79.4m FREE C
Slide 8: How we went against what we said we would do
GROUP PERFORMANCE How we went against what we said we would do1 Overhead reductions MET $29.8m CODB2 reduction; support office costs down 8.8% Gross margin recovery PARTIALLY MET Group margin increased 40bps, led by the second half. Two out of three brands showed full year growth The Warehouse m
Slide 9: Rebuilding retail fundamentals
RETAIL FUNDAMENTALS Rebuilding retail fundamentals In FY26 we strengthened how we choose product, move it through the network and convert customer demand, with early evidence visible in lower inventory, better gross margin and store execution. However, we recognise there is further work to be done.
Slide 10: Focus is moving from flat sales to sustainable revenue growth
REVENUE GROWTH Focus is moving from flat sales to sustainable revenue growth FY26 comparable sales were broadly flat. Our focus is to turn stronger retail fundamentals into sustainable revenue growth and gain back share. BRAND-LED GROWTH Clear routes to growth for each brand THE WAREHOUSE WAREHO
Slide 11: People, communities and environment
ESG People, communities and environment FY26 progress across our team, communities and environmental impact $1.9m Award Winner 90% The Good Drop won the Spark Retail NZ of electricity matched with electricity contributed to New Zealand 2026 Awards KNAPP Sustainability produced by Lodestone Energ
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Slide 13: Financial Performance
Financial Performance Stefan Knight Group CFO 13
Slide 14: Group financial performance
FINANCIAL PERFORMANCE Group financial performance Operating profit improved by $21.3m on broadly flat comparable sales, as higher gross margin and lower operating costs rebuilt operating leverage REPORTED REVENUE COMPARABLE 52 WEEKS1 SAME-STORE SALES² Year in Review • Operating profit increased to $
Slide 15: Gross margin overview
FINANCIAL PERFORMANCE Gross margin overview Group gross profit margin increased 40bps to 32.6%, driven by an improved second-half from all three brands and a strong fourth-quarter contribution from The Warehouse GROUP GROSS PROFIT MARGIN · % OF SALES THE WAREHOUSE , GP % BY QUARTER · STRONG FINISH I
Slide 16: Operating leverage returns for the first time since FY21
FINANCIAL PERFORMANCE Operating leverage returns for the first time since FY21 Gross margin improved and the cost of doing business reduced in FY26, lifting operating margin GROSS PROFIT MARGIN AND COST OF DOING BUSINESS² · % OF SALES FY26 OPERATING MARGIN 0.7% FY25:0.0% - a 70bps improvement Overvi
Slide 17: The cost reset programme
FINANCIAL PERFORMANCE The cost reset programme CODB BY CATEGORY $ MILLION FY26 FY252 CODB1 BY ALLOCATION $ MILLION Variance 52 weeks 53 weeks Brand costs 683.8 682.5 +0.2% Support office costs 226.2 248.1 (8.8%) Depreciation & amortisation 54.0 63.2 (14.5%) Total cost of doing business 964.0 993.8 (
Slide 18: The Warehouse
BRAND PERFORMANCE The Warehouse SALES SAME-STORE SALES² BASKET SIZE³ OPERATING PROFIT⁴ / (LOSS) $1,774.9m +0.6% +0.8% $(7.5)m UNITS +1.7% | ASP (1.0%) FOOT TRAFFIC (0.3%) Improved by $4.7m, with most of the VS COMPARABLE 52 improvement in the second half WEEKS1 (0.7%) FY26 FY25 Var The Warehouse red
Slide 19: Home and Apparel margins improving
BRAND PERFORMANCE - THE WAREHOUSE Home and Apparel margins improving Home and Apparel are important to The Warehouse’s profitability, representing nearly half of sales and including some of its highest-margin categories. Margins improved in both areas through better buying, stronger ranges and impro
Slide 20: Warehouse Stationery
BRAND PERFORMANCE Warehouse Stationery SALES SAME-STORE SALES² FOOT TRAFFIC³ OPERATING PROFIT⁴ / (LOSS) $227.6m +2.0% +0.2% $15.9m VS COMPARABLE 52 UNITS +3.4% | ASP (1.3%) Conversion improved too Up 94% on FY25 operating profit of WEEKS1 +2.5% $8.2m FY26 FY25 Var 52 weeks 53 weeks Warehouse Station
Slide 21: Noel Leeming
BRAND PERFORMANCE Noel Leeming SALES SAME-STORE SALES² ONLINE SALES GROWTH³ OPERATING PROFIT⁴ / (LOSS) $1,017.4m (0.5%) +13.2% $21.8m VS COMPARABLE 52 UNITS (3.9%) | ASP +3.6% | FOOT TRAFFIC3 (0.5%) Improved on-line traffic and conversion Up $10.1m on FY25 WEEKS1 (0.2%) FY26 FY25 $ million Var 52 we
Slide 22: Cash flow and net debt
GROUP PERFORMANCE Cash flow and net debt Strong operating cash flow funded increased capital investment and reduced net debt by $79.1m to $17.0m FREE CASH FLOW Free cash flow1: $79.4m $79.4m +$193.5m ($19.4m) A $124.6m improvement from FY25 ($94.7m) AVERAGE DAILY BORROWINGS -45% reduction Against FY
Slide 23: Inventory improvements strengthened the balance sheet
GROUP PERFORMANCE Inventory improvements strengthened the balance sheet Closing inventory declined by $37.9m, reflecting lower aged stock and faster Group stock turn, while further improvement remains a priority −$37.9m CLOSING INVENTORY · $ MILLION 562.3 vs FY25 $438.8m 21.8% 4.7x CLOSING INVENTORY
Slide 24: Project expenditure
GROUP PERFORMANCE Project expenditure Investment lifted in capital expenditure led by stores, operations and property $ million FY26 FY25 TOTAL PROJECT EXPENDITURE1 CAPITAL EXPENDITURE Store development, operations & property 13.0 7.3 $27.8m $21.1m Information systems 10.1 13.1 FY25: $21.0m 76% of p
Slide 25: The Year Ahead
The Year Ahead Mark Stirton Group CEO 25
Slide 26: The year ahead
2026 ANNUAL RESULTS The year ahead Trading in the first eight weeks of FY27: Group sales were broadly in line with the prior year, with TRADING UPDATE margin performance ahead of the prior comparable period The retail environment remains challenging, with cautious consumer spending and continued ENV
Slide 27: Building exceptional retail brands
Building exceptional retail brands 27
Slide 28: Appendix
Appendix 29 Sales summary 30 Quarterly sales by brand 31 EBIT and NPAT reconciliation 32 Investor metrics 33 Disclaimer 28 28
Slide 29: Sales summary
APPENDIX Sales summary The Warehouse Noel $ million Group Warehouse Stationery Leeming FY26 reported sales (52 weeks) 1,774.9 227.6 1,017.4 3,027.6 FY25 reported sales (53 weeks) 1,816.5 226.0 1,038.1 3,086.7 FY26 growth on reported FY25 (2.3%) +0.7% (2.0%) (1.9%) FY25 sales on a 52-week basis 1,787
Slide 30: Quarterly sales by brand
APPENDIX Quarterly sales by brand FY26 versus FY25 as reported. The 53rd week fell in the FY25 fourth quarter; a 13-week comparison is shown for Q4. Q4 on 13 $ million Q1 Q2 Q3 Q4 FY comparable wks The Warehouse — FY26 389.0 560.5 405.3 420.1 1,774.9 — FY25 386.3 558.4 415.9 455.9 1,816.5 — growth +
Slide 31: EBIT and NPAT reconciliation
APPENDIX EBIT and NPAT reconciliation For the 52 weeks ended 2 August 2026 Operating Profit NPAT2 $ million FY26 FY25 FY26 FY25 Reported earnings 56.6 40.5 11.2 (2.8) Statutory Restructuring costs 5.7 — 4.3 — Head office redundancies Adjustments for NZ IFRS 161 (39.7) (39.2) (2.0) (1.7) Lease accoun
Slide 32: Investor metrics
APPENDIX Investor metrics FY26 FY25 Returns Return on equity1 3.8% (0.8%) Return on net operating assets2 3.6% 3.0% Dividend payout ratio — — Cash generation Free cash flow3 $79.4m $(45.2)m Cash conversion ratio4 1.29x (0.50)x Stock turn (times) 4.7 4.6 Gearing Net debt $17.0m $96.1m Gearing (net de
Slide 33: Disclaimer
Disclaimer This presentation may contain forward looking statements and projections. There can be no certainty of the outcome and projections involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual outcomes to be materially different from t
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