TWG REPORTS "ENCOURAGING" Q1 NUMBERS

By Wares November 12, 2018 Industry news

TWG's latest update shows modest same store sales gains for Noel Leeming in the pre-Christmas quarter.

The Warehouse group issued its latest quarterly update (Q1, to end October 2018) on Friday.

Group sales of $668.3 million were +3.6% compared to Q1 FY18, an "encouraging" result, says TWG, given a negative (-1.7%) top line result at the same time last year.

The Warehouse (Red Sheds) showed sales of $360.1 million (+2%) and same store sales +2.7%, marking the Red Sheds' return to same store sales growth with EDLP now fully bedded in. The quarter also brought a slightly improved Gross Margin.

Noel Leeming's Q1 sales were $209.6 million (+7.4%) and same store sales +3.2%

Warehouse Stationery, with sales of $61.7 million (+4.4%) and same store sales +4.1% also saw improved Gross margin with the brand looking at continued integration with the Red Sheds.

Torpedo7's Q1 sales were $37 million (negative 5.6%) and same store sales also negative 2.7%, due to the divestment of the Shotgun brand and the closure of the Number 1 Fitness website. However, continuing business sales were +14.1% thanks to store network expansion.

Group online sales (NZ) were $49.3 million (+5.3%) and, excluding Torpedo7, Q1 online sales were +27%).

Online sales as a percentage of total TWG sales is now 7.4%.

The TWG Annual Shareholder Meeting is on 23 November.

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