The Warehouse Group (WHS) H1 2026 earnings summary

Executive summary

• Group sales reached NZD 1.6 billion for H1 FY26, up 0.3% year-over-year, with like-for-like same store sales up 0.5%.

• Operating profit (EBIT pre-IFRS16) rose 37.7% to NZD 26.9 million, with reported net profit after tax up 33.6% to NZD 15.7 million and adjusted net profit after tax up 67.1% to NZD 17.9 million.

• Disciplined cost control, a leaner operating model, and new management contributed to improved profitability despite a challenging retail environment.

• No interim dividend declared due to ongoing economic uncertainty and a focus on rebuilding shareholder value.

• A cost reset and restructuring program was initiated in November 2025, including a partnership with Tata Consulting Services for corporate function outsourcing.

Financial highlights

• Gross profit was NZD 520.5 million, with a gross margin of 32.3%, down 20 basis points year-over-year.

• Cost of doing business fell 1.7% to 30.6% of sales, with total costs reduced by NZD 8.6 million.

• Adjusted NPAT increased 67.1% to NZD 17.9 million; reported NPAT up 33.6% to NZD 15.7 million.

• Net debt improved to NZD 93 million, with average daily bank borrowings down NZD 52 million year-over-year; comparable net cash position improved to NZD 45.2 million.

• Positive free cash flow of NZD 3.1 million achieved, supported by controlled capital expenditure.

Outlook and guidance

• Sales in the first six weeks of H2 FY26 were down 0.2% year-over-year, with a flat trend continuing.

• Focus remains on margin recovery, further cost reductions, tighter inventory management, and disciplined capital expenditure.

• Cautious outlook for H2 due to geopolitical risks, rising freight costs, and economic uncertainty, with management monitoring global volatility.