The Warehouse swings to $11.2m net profit as costs fall
The Warehouse Group reported a net profit of $11.2 million for 2026, marking a significant recovery from the previous year's loss. The company attributed this improvement to better inventory management and reduced operating costs.
Why it matters
Indicates a potential turnaround for a major New Zealand retailer amidst a challenging economic environment.
The Warehouse has reported its 2026 full-year results and has improved its operating loss from the year prior.
The Warehouse Group has reported an improved annual financial result, with gross margin up, cost of doing business down and higher profit.
However, the Warehouse is still on the road to recovery amid generally flat sales revenue.
For the 52 weeks to August 2, 2026, the company reported sales of $3 billion, down 1.9% on a 53-week full-year basis, but up 0.4% on a comparative 52-week same-store basis.
The group’s gross profit margin grew 40 basis points to 32.6%, with the cost-of-doing-business (CODB) reducing by $29.8 million to 31.8% of sales, an improvement of 40 basis points.
It was the first year since 2021 that gross margin improved while costs reduced as a percentage of sales.
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