Warehouse FY26: profit and operating cash recover

Profit before tax was NZ$16.989m against a NZ$2.999m loss. Retail sales were NZ$3b, down 1.9% across the unequal reporting periods. These are full-year results; they should not be compared with a half-year result under the same annual label. Annual report, financial statements, printed pages 34-35

Operating cash flow rose to NZ$193.513m from NZ$72.323m. Borrowings fell to NZ$58.900m from NZ$135.300m, while cash and cash equivalents increased to NZ$41.883m from NZ$39.206m. On a borrowings-less-cash basis, debt was NZ$17.017m against NZ$96.094m; these amounts exclude separately reported lease liabilities. Cash-flow statement and bank facilities note, printed pages 36 and 47

The operating cash-flow reconciliation includes a NZ$37.899m cash inflow from inventory, compared with a NZ$4.590m outflow in FY25. That supports the observed cash recovery without establishing that the same inventory release will recur. The same reconciliation shows a NZ$13.911m outflow from payables, compared with NZ$84.211m in FY25. Operating cash-flow reconciliation, printed page 36

Brand performance remains uneven. The Warehouse recorded a NZ$7.529m segment operating loss, compared with a NZ$12.247m loss; Warehouse Stationery earned NZ$15.903m against NZ$8.217m; Noel Leeming earned NZ$21.758m against NZ$11.667m. These issuer segment measures exclude NZ IFRS 16 lease effects. They should not be read as directly equivalent to group EBIT after unusual items. Segment note, printed page 39

It identifies margin recovery at The Warehouse as central, alongside investment in product, stores and customer experience. These are stated operating priorities, not a quantified profit forecast. CEO report, printed page 10

The board did not declare a final dividend. It said retaining capital was appropriate to support financial recovery and strategic investment, despite the improved result. The annual dividend table records nil ordinary dividends in both FY26 and FY25. Dividend note, printed page 42, and dividend table, printed page 80

PBT of NZ$16.989m less the NZ$5.463m tax expense reconciles to that group profit. The prior-year group loss of NZ$2.427m, less NZ$0.337m attributable to minorities, reconciles to the shareholders' NZ$2.764m loss. Income statement, printed page 34

Group EBIT after unusual items was NZ$56.593m, compared with NZ$40.516m. The report separately shows operating profit before unusual items of NZ$62.309m and NZ$5.716m of restructuring charges. Its adjusted net profit of NZ$13.531m excludes unusual items and specified lease-accounting effects; this is an issuer-defined non-GAAP measure and does not replace the statutory attributable profit. Income statement and adjusted profit reconciliation, printed pages 34 and 42

Cash purchases of property, equipment and software were NZ$19.446m; lease principal repayments were a further NZ$94.705m. Subtracting both from operating cash flow gives NZ$79.362m. This is a simple cash-flow calculation, not a company-disclosed free-cash-flow measure. Cash-flow statement, printed page 36

This briefing cannot assess the delivery of FY27 priorities, future inventory releases or the timing of dividend restoration.