Warehouse Group reports Q1 sales drop, improved margins

The Warehouse Group has reported a decline in total sales for the first quarter of FY24 compared to the same period last year.

The decline was seen across all brands, with The Warehouse, Warehouse Stationery, Noel Leeming, and Torpedo7 all experiencing lower sales.

The Group's gross profit margin improved due to better management of costs.

The Warehouse saw a decline in homeware and apparel sales but an increase in grocery and audiovisual sales.

Warehouse Stationery experienced a decline in tablet, tech accessory, and print & consumables sales but growth in print & copy services and communication products.

Noel Leeming saw a decline in big-ticket item sales but growth in communications and gaming categories.

Torpedo7's sales were impacted by a decline in bikes and riding apparel sales and issues with the ERP system replacement.

Online sales also decreased compared to the same period last year.

The Group's market share slightly decreased, and the CEO expressed concern about Torpedo7's performance.

The outlook for the second quarter remains uncertain.

The Group will pay a final dividend and hold its annual shareholders' meeting in November.