The Warehouse Group (WHS) investor relations material

Executive summary

• FY26 sales were $3,027.6m, down 1.9% reported due to FY25’s 53rd week; comparable 52-week sales fell 0.2%, while same-store sales rose 0.4%.

• Operating profit (EBIT pre-IFRS16) rose to $22.6m from $1.3m, driven by margin gains and cost discipline despite weak retail conditions.

• Reported NPAT improved to $11.2m from a $2.8m loss in FY25.

• Net debt fell $79.1m to $17.0m on strong cash generation and disciplined working capital management.

• No FY26 final dividend was declared, prioritizing sustainable earnings recovery and financial flexibility.

Financial highlights

• Gross margin increased 40 bps to 32.6%; CODB fell $29.8m, or 40 bps, to 31.8% of sales.

• Adjusted NPAT was $13.5m, versus a $4.5m loss in FY25.

• Operating margin improved to 0.7% from 0.0%.

• Operating cash flow increased $121.2m to $193.5m; free cash flow was $79.4m versus an outflow of $45.2m in FY25.

Outlook and guidance

• First eight weeks of FY27: sales broadly in line with the prior year and margins ahead.

• Priorities include sustaining margin recovery, cost discipline, improving controllable retail fundamentals, and selective brand and store investment.

• Retail conditions are expected to remain challenging; CODB growth is expected below inflation, with below 31% of sales a medium-term aspiration rather than an FY27 target.

• November Investor Day will detail longer-term strategy, growth plans, financial aspirations, capital structure considerations, and a three-to-four-year outlook.