Warehouse Group Ltd. · NZX:WHS
Warehouse — The Warehouse Group — H1 FY26 Earnings Presentation
29 slides from Warehouse's earnings presentation, Mar 26, 2026
Slide 1: Interim Results
2026 2026 Interim Results Interim 26 weeks ending Sunday 1 February 2026 Results // 26 weeks ending Sunday 1 February 2026
Slide 2: Contents
Contents 03 Chair update – John Journee, Chair 05 Group update – Mark Stirton, Group CEO 10 Financial performance – Stefan Knight, Group CFO 22 The year ahead – Mark Stirton, Group CEO 25 Appendix – Additional information 2
Slide 3: Chair update
Chair update // Chair John Journee 3
Slide 4: Chair update
Chair update The Group is on the right path and execution is improving Sales Gross Profit Operating Profit2 $1.6bn $520.5m $26.9m Up 0.3% on FY25 H1 Down 0.2% on FY25 H1 Up 37.7% from FY25 H1 Like for like same store Gross Profit Margin 32.3% sales1 up 0.5% on FY25 H1 ∕ While there are green shoots
Slide 5: Group update
Group update // Group CEO Mark Stirton 5
Slide 6: Macroeconomic context in the first half
Macroeconomic context in the first half Consumer Confidence lifted from 101.5 to 107.2 in January, the highest level since August 20211. The proportion of households thinking it’s a good time to buy a “ Saving more money tops Kiwis’ // major household item rose 2 points to +1. priorities for 202
Slide 7: FY26 H1 highlights
FY26 H1 highlights In a volatile environment we delivered a solid result ⁄ Held sales, reduced costs and improved profitability by staying disciplined. ⁄ A standout result for Warehouse Stationery, our smallest brand and the fastest to turn around. ⁄ Strong profit wedge achieved in Noel Leeming with
Slide 8: Making headway on retail fundamentals
Making headway on retail fundamentals Plan & buy Move Sell ∕ New merchandise ∕ Dedicated supply chain ∕ Store growth pipeline strategy and role on executive team. identified starting with The governance developed. Warehouse and Noel ∕ Shipping supplier Leeming Mangawhai. ∕ Key talent capability chan
Slide 9: Doing good is in our DNA
Doing good is in our DNA Community ∕ Raised nearly $700,000 from our Red Bag to give back locally. ∕ Santa visited 19 towns and took 2,371 family photos. ∕ Christmas Be the Joy campaign raised $250k+ and thousands of gifts. ∕ Over 1,000 more team members hired in local communities to help with Chris
Slide 10: Financial performance
Financial performance // Group CFO Stef Knight 10
Slide 11: Group financial performance
Group financial performance $ million FY26 H1 FY25 H1 Variance • A solid result in a tough economic environment with constrained customer spending Sales revenue 1,612.1 1,607.2 0.3% • Group sales increased 0.3%, up 0.5% on a like for like Gross Profit 520.5 521.7 -0.2% same store sales basis1. Gross
Slide 12: Quarterly performance
Quarterly performance Group Sales ($m) • FY26 Q1 saw sales growth of 0.9% at the cost of gross profit margin 939.2 938.0 which decreased 80bps1. • Gross margin declined 80bps in Q1 with margin growth in Warehouse 668.0 674.1 Stationery and Noel Leeming offset by The Warehouse as it dealt with unprod
Slide 13: The Warehouse
The Warehouse • Like for like same store sales1 increased 1.2% - driven by store $million FY26 H1 FY25 H1 Variance traffic up 0.5% and conversion up 1.0%. Sales 949.5 944.7 0.5% • Total units sold increased 1.7%, while ASP decreased 1.9%. Operating Profit (EBIT pre-IFRS16) 9.1 12.5 -27.2% • Sales gr
Slide 14: The Warehouse
The Warehouse Where we’re making progress Foot traffic up 0.5% - 1.5 million New Zealanders through our stores every week. Home - units up 4.2% in a competitive environment, driven by lower ASP down 5.3%. Apparel – good ASP growth up 2.2%, offsetting lower units sold down 3.4%. Conversion up
Slide 15: Warehouse Stationery
Warehouse Stationery $million FY26 H1 FY25 H1 Variance • Warehouse Stationery was the standout performer with sales Sales 116.1 109.8 5.7% up 5.7% and strong growth across all categories. Operating Profit (EBIT pre-IFRS16) 8.1 2.4 243.0% • FY26 H1 sales included the last week of January (the biggest
Slide 16: Noel Leeming
Noel Leeming $million FY26 H1 FY25 H1 Variance • Sales declined 1.2% compared to FY25 H1, reflecting a strong Sales 542.2 548.9 (1.2)% comparative period with elevated Flybuys redemption sales. Operating Profit (EBIT pre-IFRS16) 12.9 8.5 52.0% • While like for like same store sales1 decreased 1.3%,
Slide 17: Disciplined cost control delivering results
Disciplined cost control delivering results CODB by category ($m) • CODB1 reduced by 1.7% to 30.6% of sales as we start to see benefits of our cost reset programme, as we aim for 31.7% 31.3% CODB to be less than 31%. 700 30.6% 35.0% 600 30.0% • Due to the seasonality of sales in H1, CODB as a 516.7
Slide 18: Growth in Operating Profit
Growth in Operating Profit FY26 H1 Operating Profit1 ($m) • Brand Profit decreased 3.3% compared to FY25 H1 due to the small decrease in gross profit (down 0.2%), and 43.0 1.3% increase in Brand CODB costs. • However, disciplined cost control at SSO, including 26.9 our partnership with TCS, and lowe
Slide 19: Net debt and working capital
Net debt and working capital 60 138.5 45.2 40 Positive Free Cash Flow $3.1m 20 19.0 0 (20) 55.9 (40) (60) (6.6) (80) (100) (96.1) (46.2) (0.3) (93.3) (120) Operating cash flow Lease payments FY26 H1 Net Debt FY25 YE FY25 YE Net Debt Operating Capital Capital expenditure Lease Other Other FY26 H1 Add
Slide 20: Inventory
Inventory Inventory ($m) • Inventory decreased $25.8m (4.7%) compared to FY25 H1. 617.8 530.6 546.1 520.3 • Weighted average stock turn of 4.7x (FY25: 4.6x), 492.7 demonstrating continued focus on stock turns and sell through rates. • Aged inventory1 of 15.9% (FY25: 23.1%), clearing higher aged inve
Slide 21: Project expenditure
Project expenditure • Project Expenditure1 was in line with spend in prior period, with reduced Information Systems and Digital spend, and increased spend on store development and improvements. • FY26 H1 project expenditure of $9.1 million included capital expenditure of $5.8 million and SaaS and IT
Slide 22: The year ahead
The year ahead // Group CEO Mark Stirton 22
Slide 23: The year ahead
The year ahead ∕ Sales in the first 6 weeks of H2 decreased 0.2% compared to the same six weeks last year. ∕ FY26 focus continues on margin recovery in The Warehouse, CODB overhead reductions, unlocking working capital through inventory management, and disciplined capital expenditure to drive improv
Slide 24: Building exceptional retail brands
Building exceptional retail brands //
Slide 25: Appendix
Appendix 26 EBIT and NPAT reconciliation 27 Investor metrics 28 Glossary 29 Disclaimer 25
Slide 26: EBIT and NPAT reconciliation
EBIT and NPAT reconciliation For 26 weeks ended 1 February 2026 Operating Profit1 Net Profit After Tax1 FY26 H1 NPAT movement (EBIT pre-NZIFRS 16) (NPAT) $ million FY26 H1 FY25 H1 FY26 H1 FY25 H1 8.6 2.6 Reported Earnings 42.2 38.9 15.7 11.8 15.7 (1.3) Restructuring costs (4.8) 4.8 - 3.5 - 11.8 Adju
Slide 27: Investor metrics
Investor metrics FY26 H1 FY25 H1 FY25 YE Returns Return on Equity1 5.3% 3.8% -0.8% Return on Net Operating Assets2 2.7% 2.6% 3.0% Dividend payout ratio - - - Cash Generation Free cashflow3 $3.1m $70.0m $(45.2)m Stock turn (times) 4.7 4.3 4.6 Profitability Gross profit margin 32.3% 32.5% 32.2% CODB a
Slide 28: Glossary
Glossary Term Definition ASP Average Selling Price CODB Cost of Doing Business COGS Cost of Goods Sold DC Distribution Centre EDLP Every Day Low Price ELT Executive Leadership Team FC Fulfilment Centre GMROI Gross Margin Return On Inventory (at cost) NLG Noel Leeming SaaS Software as a Service SSO S
Slide 29: 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