Noel Leeming stars for The Warehouse after Dick Smith collapse
- 12 May, 2017 12:09
Electronics and appliance chain Noel Leeming was the star of the Warehouse Group in third quarter retail sales announced today.
Noel Leeming's sales for the third quarter, ended 30 April, were up $10.3 million, or 5.7%, to $190.9 million, compared with the same quarter last year. Same store sales increased 5.2%.
The Warehouse said performance was strong across all categories, delivering continued market share growth.
"Year on year growth remains strong but has slowed as the business cycles the anniversary of the exit of Dick Smith from the market," The Warehouse reported.
The rival Dick Smith chain collapsed in February last year, meaning the next set of quarterly results will be telling for Noel Leeming as it should reveal underlying organic growth.
Noel Leeming offers Apple, HP, Lenovo, Acer, Microsoft and Samsung PC and tablet hardware as well as software, accessories and printers.
Only online sales recorded a better performance, but only represent 6.6% of total group sales.
Company-wide online recorded sales of $45.6 million, up 13% or $5.3 million compared to the same quarter last year.
Yesterday The Warehouse announced it had appointed former Gloria Jeans US chief operating officer Timothy Kasbe to the new role of chief information and digital officer to help accelerate the company's digital strategy.
Overall, The Warehouse reported group retail sales of $683.5 million up $11.3M or 1.7% compared to the same quarter last year.
The "Red Sheds" reported sales of $391.7 million, up 0.6% or $2.4 million for the quarter. Same store sales, however, increased 2.7%.
Warehouse Stationery (the ‘Blue Sheds’) reported sales fof $72.1 million, a decrease of 0.6% or $0.4 million. Same store sales decreased 1.1% in the quarter.
"The small reduction in reported sales was mainly due to price competitiveness of technology categories and cycling against the effects from NZ Post’s postal price increases in the same period last year," The Warehouse reported.
The results were in line with expectations so full-year profit guidance remains unchanged.