By Wares March 08, 2018 Industry news

Noel Leeming is easily the top performer in The Warehouse Group's otherwise tough first half.

In its H1 numbers this morning The Warehouse Group (TWG) has announced an Adjusted NPAT of $37.7 million for H1 FY2018 (6 months to the end of January 2018), which is above the recent guidance range of $32-$35 million.

A Gross Profit of $522.5 million however showed slim gains at +0.7% and group-wide sales were marginally negative (-0.9%) at $1.6 billion.

Group online sales in NZ were $117.4 million (+10.5%).

With H1 top line and same store sales decreases, the core Red Shed business's performance was nevertheless described as "encouraging given the degree of change that has been absorbed by the business".

The Blue Sheds and Torpedo 7 also both lost ground on last year in terms of the bottom line, although Torpedo 7 saw a slim top line gain. 

And, after strong growth last year, sales at the daily deals site 1-day were flat.

The upside of this morning's interim result was Noel Leeming, whose H1 sales were $453.9 million, a handy increase on last year (+7.5%), with same store sales also positive at +5.1%. 

Smartphones and portable audio were Noel Leeming's stand-out categories, alongside gains across all categories except TVs, which were flat on last year.

Noel Leeming's H1 operating profit was $15.3 million, massively up on last H1 (+65.7%, up $6.1 million) thanks in part to a $2.7 million non-recurring item (a change in the accounting treatment of supplier funded store fixtures).

With the expectation that the second half of FY2018 will be similar to H2 FY2017, the overall TWG outlook for the full year is for around a 22-25% profit decline year on year.

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