The Warehouse Group (“the Group”) has today provided
a trading update for the 13 weeks ended 3 May 2026 (“FY26
Q3”).
- Group sales were $700.8 million, down
1.4% compared to the 13 weeks ending 27 April 2025 (“FY25
Q3”). Group like for like same store sales[1]
were flat compared to the corresponding 13 weeks ending 4
May 2025 - Group sales year to date for the 39 weeks
ending 3 May 2026 were $2.3 billion, up 0.7% on a like for
like same store sales basis - The Warehouse FY26 Q3
sales were $405.3 million, down 2.5% compared to FY25 Q3,
with like for like same store sales down
0.8% - Warehouse Stationery FY26 Q3 sales were $57.1
million, down 2.9% compared to FY25 Q3, with like for like
same store sales up 3.1% - Noel Leeming FY26 Q3 sales
were $236.6 million, up 0.7% compared to FY25 Q3, with like
for like same store sales up 1.1% - Group gross profit
margin up 50 basis points in FY26 Q3 compared to the same
period last year, and up 10 basis points for FY26 year to
date compared to the same period last year - Noel
Leeming will open a new flagship store on Queen Street in
Auckland later this year
The Group delivered a
stable trading result for the quarter ended 3 May 2026, with
sales flat on a like for like same store sales basis,
despite growing pressure on consumer confidence throughout
the quarter.
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Group Chief Executive Officer Mark
Stirton said the result reflected progress on improving
retail fundamentals in an increasingly tough climate. “As
fuel prices rose, we saw customers become more conscious of
travel, making fewer shopping trips but buying more when
they visited our stores,” said Mr Stirton.
Group
foot traffic declined 1.8% during the quarter, while average
customer basket size increased 2.7%. Group online sales
increased 5.4% in FY26 Q3, representing 6.8% of total sales,
up from 6.4% in FY25 Q3, driven by particularly strong
online growth in Noel Leeming.
Improved margin
management, particularly in Warehouse Stationery and Noel
Leeming, partially offset by a decline in The Warehouse,
resulted in Group gross profit margin up 50 basis points to
31.9% in FY26 Q3 compared to FY25 Q3, and up 10 basis points
to 32.2% for FY26 year to date compared to the same period
last year.
“Cost discipline and working capital
management remains our immediate priority while we continue
the work to lift margin performance.” said Mr.
Stirton.
Brand performance
The
Warehouse
The Warehouse FY26 Q3 sales were $405.3
million, down 2.5% on FY25 Q3, with like for like same store
sales down 0.8%. The Warehouse sales year to date were $1.4
billion, up 1.4% on a like for like same store sales basis
compared to 39 weeks ending 4 May 2025. Sales grew in
important categories including health and beauty and apparel
as range and store experience improvements took
effect.
Warehouse Stationery
Warehouse
Stationery FY26 Q3 sales were $57.1 million, down 2.9% on a
reported basis, reflecting the timing of the peak back to
school trading week falling in FY26 H1. Like for like same
store sales, which normalises for this timing, increased
3.1%. Warehouse Stationery sales year to date were $173.2
million, up 1.7% on a like for like same store sales
basis.
Noel Leeming
Noel Leeming reversed the
sales decline seen in the first half, delivering FY26 Q3
sales of $236.6 million, up 0.7% on a reported basis and up
1.1% on a like for like same store sales basis, reflecting a
strong Easter trading period. Noel Leeming sales year to
date were $778.9 million, down 0.7% on a like for like same
store sales basis.
Store footprint
growth – Noel Leeming Auckland Central flagship
Noel
Leeming will return to Auckland’s city centre this summer
with the opening of a new flagship store at 192 Queen
Street. Noel Leeming Chief Executive Officer Jason Bell said
the new store reflects the growing importance of
experienceled retail.
“We’re bringing Noel
Leeming back to the city centre with a store designed to
offer something different for customers,” said Mr Bell.
“Alongside the latest technology, the Queen Street store
will feature a more modern design and interactive product
demos, gaming events and expert service, creating an
exciting experience for customers.”
The store’s
opening is expected to broadly coincide with the launch of
the City Rail Link and Te Waihorotiu station. Noel Leeming
last operated on Queen Street in 2021.
Outlook
Looking ahead, trading
conditions are expected to remain challenging, with
inflationary pressures, global instability and an uncertain
domestic economy continuing to affect consumers and
businesses.
Like other retailers, the Group is seeing
higher costs, particularly across international and domestic
freight. The Group is managing these pressures through
disciplined retail execution and a continued focus on
strengthening the fundamentals of the
business.
“We’re doing everything we can to
balance providing everyday value for customers while
managing the impact of higher costs on our business,” said
Mr Stirton. “In this environment, our priority is to stay
focused on what we can control.”
[1]
Like for like same store sales excludes online sales and
Noel Leeming Commercial sales and compares 13 weeks and 39
weeks (YTD) ending 3 May 2026 with 13 weeks and 39 weeks
(YTD) ending 4 May 2025, adjusting for the 53rd week in
FY25.