Digital sales and new season home and apparel lines all underpinned strong first-quarter sales for The Warehouse Group - booking $634million in revenue.
Chief executive Mark Powell said the sales growth was achieved with having only low levels of stock-clearance sales, which improved gross margins compared with last year, while stock levels were well positioned for the important Christmas trading period.
''Achieving 19 consecutive quarters of same-store sales growth continues the positive momentum that has been building in the Red Sheds as a result of significant investment over the last four years,'' Mr Powell said.
In October the group sold the South Dunedin Warehouse store property for $14.1million, making a pre-tax gain of about $5.4million.
Mr Powell said initiatives that improved quality, range and price were well received by customers with both sales and transaction volumes growing in the quarter.
The Red Sheds had continued to expand their digital capability, with customers increasingly adopting the ''Endless Aisles'' and ''Click and Collect'' options.
''One-third of our online sales now utilise the 'Click and Collect' service,'' Mr Powell said.
The integrated online and physical stores offer was proving very popular with customers, he said.
''These first-quarter results give us good momentum heading into the Christmas and summer trading period,'' he said.
Results
• Group sales for first quarter up 7.7% to $634.5million (same store sales*)
• The Warehouse sales up 3.6% to $373.9million
• Warehouse Stationery sales up 4.1% to $62.8million
• Noel Leeming sales up 10.2% to $163.9million.
• Group online sales up 15.9% to $37million.
*92 Warehouse stores, 72 Noel Leeming, 5 Lifestyle Appliance Stores, 66 Warehouse Stationery.
SOURCE: WHS
