NZ's Warehouse Q3 sales fall 4.3 pct on soft demand

Thu May 8, 2008 11:06pm BST
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WELLINGTON (Reuters) - New Zealand's biggest listed retailer the Warehouse Ltd (WHS.NZ: Quote, Profile, Research) said on Friday third quarter sales were down 4.3 percent on a year ago on the back of mild weather and softer consumer demand.

Sales for the three months to April 27 were NZ$394.6 million ($303 million), while group sales for the fiscal year to date were NZ$1.34 billion down 1.4 percent.

"Consumer demand has softened since the end of January with a marked slowdown in demand for high ticket items, and a slow start to the autumn/winter season," the company said in a statement.

The company made no comment on its full year forecast. In March it said it expected a full year profit of NZ$94-98 million, which was up to 18 percent lower than the year before result.

The company last traded at NZ$5.45.

The Warehouse is being eyed as a takeover target by rival supermarket operators Foodstuffs Ltd and Woolworths Ltd (WOW.AX: Quote, Profile, Research), both of whom have gone to court to contest a competition regulator decision barring them from making bids.

($1=NZ$1.30)