The Warehouse Group was making encouraging progress on its long-term strategic plan but management yesterday cautioned that cost pressures meant the company's profit growth would take time to come through.
The group, which will quit its secondary ASX listing from July, increased sales 3.3% in the three months ending April 29 as it attracted more demand across all retail goods, except clothing.
Sales rose to $394.2 million in the quarter from $381.5 million in the corresponding period a year earlier, the company said in a statement.
The Red Sheds boosted revenue 3.5% to $338.4 million, while its stationery outlets increased sales 2.4% to $55.8 million.
"All major merchandise departments other than apparel performed ahead of last year at both a sales and gross profit level," chief executive Mark Powell said.
"Apparel continued to be impacted in February and March by the challenges of exiting a mild summer."
Forsyth Barr broker Tom Bliss said The Warehouse was seeing a positive early response to increased investment in stores with its first five refitted stores now open.
There was no change to management's full-year earnings guidance of $62 million to $66 million before property sales gains. Forsyth Barr has a hold on the shares.
Forsyth Barr forecasts remained unchanged at the top of the forecast range with a valuation of $3.04 a share.
The biggest listed retailer increased nine-month sales 3.3% to $1.33 billion.
The shares were unchanged at $2.61 in trading yesterday, and have shed 13% so far this year.
