WHS - Warehouse Group

[LaserEyeKiwi]

I'm sure I'm not the only one who thinks the annual savings being targeted are underwhelming.

$17m annual savings on CODB mean before tax income will be $17m higher.

$17m higher pre-tax income for a company with a current market cap of $250m is a huge amount.

[winner (n)]

Kiwi mascot going to save the Warehouse

Retired in 2005 -- since then Red Sheds have been in gradual decline

Sorry .....not allowed to post a cool picture of the kiwi

[winner (n)]

BusinessDesk today -

Jarden analysts lifted their rating on The Warehouse Group to overweight and increased their 12-month target price by 19% to $1.15, thanks to cost-cutting and an improving consumer backdrop.

"We believe WHS [The Warehouse Group] offers investors significant upside if it can execute on self-help targets," analysts Guy Hooper and Nick Yeo said.

"We are encouraged by initial progress on its operating cost base, with announcements to date supportive of management having the mandate to progress the changes required."

WHS is a BUY BUY BUY and it will OUTPERFORM OUTPERFORM OUTPERFORM

[Basil]

if it can execute on self-help targets

That's the $64,000 question.  I need to see some TA support on the chart before having a "speculative punt" on this poorly performing mutt.  If I do so it'll be a modest bet, only playing with the profits I made from selling to Nick a few years back at $4.10

[Crackity]

Lucky NZs best analysts understand. Same article has some Fubar comments as well - seem to be a bit behind the 8 ball on spruiking this 🤭

Forsyth Barr analyst Paul Laxton Koraua said while sensible, the job losses and resulting cost savings of $3 million to $4m in the 2026 financial year were small compared to its overall labour spend.  The company spent more than $526m on employee expenses in 2025.  Its target price for the retailer is 82 cents, and it rated the stock to underperform.

[LaserEyeKiwi]

Lucky NZs best analysts understand. Same article has some Fubar comments as well - seem to be a bit behind the 8 ball on spruiking this 🤭

Forsyth Barr analyst Paul Laxton Koraua said while sensible, the job losses and resulting cost savings of $3 million to $4m in the 2026 financial year were small compared to its overall labour spend.  The company spent more than $526m on employee expenses in 2025.  Its target price for the retailer is 82 cents, and it rated the stock to underperform.

The vast majority of the employee expense is in store staff, required to actually operate. It's the back office staff where the $17m in planned eventual annual savings is actually coming from. Obviously the 2026 savings total is going to be small - Layoffs are happening in 2nd half of year, and then redundancy payments as well to account for - but the ongoing savings into 2027 finaicnal year and beyond will be considerable.

[lorraina]

Every thing WHS are doing is just to stay in business.
Redundancy payments are high.
Ongoing lease costs are not reducing,and neither are their insurances and power costs.
The biggest problem is their buyers are not setting the market on fire,in fact the Christchurch stores have poor displays and stock selection.
As with other retailers they often show an item on their web site, but it is out of stock instore.
When you compare WHS's store staff to Mitre 10's there is a country mile of difference.
Mitre 10's are there ,friendly,helpful,and know their stock.
WHS's point of difference has gone. Everyone no longer gets a bargain.
 

[Shareguy]

Every thing WHS are doing is just to stay in business.
Redundancy payments are high.
Ongoing lease costs are not reducing,and neither are their insurances and power costs.
The biggest problem is their buyers are not setting the market on fire,in fact the Christchurch stores have poor displays and stock selection.
As with other retailers they often show an item on their web site, but it is out of stock instore.
When you compare WHS's store staff to Mitre 10's there is a country mile of difference.
Mitre 10's are there ,friendly,helpful,and know their stock.
WHS's point of difference has gone. Everyone no longer gets a bargain.
 

Agree with this and I hardly go there myself these days. Gross margins continue to diverge, with Kmart NZ at 42.7% and Red Sheds at 35.7% in FY25, while they were broadly even in FY22.  They need to sort this out or dramatically increase sales. You can only cut costs so far. I don't think it's going to survive with its current offering. They do have valuable sites that would be of interest to say a third grocery player OR transition themselves.

[lorraina]

Leases of their large sites.
Positive if some one wants them.
Negative if no body wants them.
What worries me was their recent use of one of their long time "vacant buildings" to run a clearance pop up store when Ikea opened.Therefore that site was not one of their  "valuable " sites.,as it had been  vacant for years.

[Basil]

Good discussion on the other channel. Why would anyone who is really good at what they do choose to work for WHS...

[LaserEyeKiwi]

Good discussion on the other channel. Why would anyone who is really good at what they do choose to work for WHS...

People who are really good at retail wouldn't want a chance to run the nations biggest retailer?

[Auto Rower]

People who are really good at retail wouldn't want a chance to run the nations biggest retailer?

Absolutely & anyone who is worth their salt would love a job where they can stamp their mark rather than follow the same easy road as the last C E O clipping the ticket .
That's the way I  like it they usually put a lot more effort in, and have an incentive .

[winner (n)]

B Hi Fi selling heaps in NZ. A 17% GM so not that profit at end of day

Half Year to December sales grew from $202m to $268m up 36%. EBIT from $2.2m to $4.5m

Did Noel Leeming grow sales at this rate?

[Basil]

Didn't their top guy at Noel Leeming leave for JB Hi-fi a couple of years ago ?  He's made a huge difference there.  Smart people know the WHS are in systemic decline.

[winner (n)]

Didn't their top guy at Noel Leeming leave for JB Hi-fi a couple of years ago ?  He's made a huge difference there.  Smart people know the WHS are in systemic decline.

Yep in 2022 appointed Tim Edwards to pursue what they described as a "significant opportunity to grow and expand" its New Zealand business under a new local leader.

Tim seemed excited at the time after being at WHS for about 10 years - probably relishing the opportunity to actually do something exciting instead of being stuck in a rut with WHS