Warehouse Group Sees Loss But Signs Of Recovery

The Warehouse Group has reported a net loss of $2.8 million for the 2025 financial year, though the retail giant says there are early signs of recovery following a challenging period.

The result marks a significant improvement from the previous year’s $54.2 million loss. Group sales rose 1.6 percent to $3.1 billion, though they were flat when adjusted for same-store sales over the 52-week year.

Chief executive Mark Stirton, who stepped into the role in August, described FY25 as a “reset” year. "We simplified our organisational structure and returned to a brand-led model with retail ways of working. We also reset our pricing, improved our product range, and controlled costs and capital expenditure," he said.

Key changes included a sharper focus on cost control, stock management, and category performance. The company is targeting growth in higher-margin areas such as apparel, health and beauty, home and toys.

Stirton said the group remained focused on improving shareholder returns through better sourcing, capital management and investments that support long-term margin growth.

Despite the loss, several areas showed growth. Sales at The Warehouse, also known as the ‘red sheds’, rose 1.4 percent to $1.8 billion. Noel Leeming increased sales by 3.3 percent to $1.0 billion. However, Warehouse Stationery sales fell 2.5 percent to $226 million.

The group’s gross profit margin dipped to 32.2 percent, down from 33.6 percent the year before. Underlying profit dropped to $1.3 million, compared to $28.9 million in FY24.

Chair Dame Joan Withers said, “FY25 has been another very difficult year for the company and while some meaningful progress has been made, there is still much work to do.” She noted that high inflation, unemployment and low consumer confidence continued to pressure spending and retail competition.

Looking ahead, Withers said the company entered FY26 with “a clear focus on disciplined delivery.” She added, “While we are seeing early signs of improvement, we remain cautious about the pace of recovery.”

Trading in the first seven weeks of FY26 has remained tough, with sales and gross profits tracking similarly to last year.

The Board has chosen not to declare a final dividend for FY25 due to the company’s financial position.

Related: