The Warehouse Group has reported a decline in sales and expects ebit to be in line with the previous year's loss.
The company's preliminary result for the first half of the 2025 financial year revealed group sales of $1.607 billion, down 1.6% compared to the same period last year.
The group said the ongoing retail trading headwinds in New Zealand have slowed the pace of its turnaround.
It attributed the sluggish economic recovery and lower customer demand to a highly promotional retail environment, which is putting pressure on gross margins.
The company's interim chief executive, John Journee, said there has been an improved sales trend since December 2024, with positive year-on-year sales growth in January and February.
However, he acknowledged that gross margins remain constrained.
The group expects the economy to recover towards the end of 2025, which could boost consumer sentiment and encourage spending.
The full update on first-half trading will be provided at the interim results on March 21.
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