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Warehouse Group says it will repay the nearly $ 70 million it received from the government wage subsidy earlier this year.
Sales in the first quarter of the new financial year for the group increased 6.3 percent and are now up 6.6 percent year-to-date compared to the same period last year.
The group includes The Warehouse, Noel Leeming, 1-day, and Torpedo7.
Earnings for the semester are expected to exceed $ 70 million, before salary subsidy reimbursement, compared to $ 46.2 million in the prior financial year.
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The group received $ 67.7 million from the plan for 11,000 employees, but was criticized when it went on to restructure its operations and cut hundreds of jobs.
Prime Minister Jacinda Ardern said she was “angry” with the retailer’s proposal to cut jobs.
Auckland University accounting professor Jilnaught Wong previously pointed to the retailer as an example of one that should repay the subsidy.
“They went through a few difficult months, but the point is that their online sales have increased and they generally have twice the amount of cash on hand as at the same time last year,” Wong said. Stuff.
Maarten Holl / Things
The Warehouse Group will refund the money it received in wage subsidies.
CEO Nick Grayston said: “Sales performance to date has been well above expectations and our financial position has remained strong. We are now in a situation where the wage subsidy can be fully repaid.
“We are grateful to have received the government salary subsidy that allowed us to commit to paying our 11,000 team members quickly and in full, during a time of great uncertainty.
“The strong sales performance is driven by a business environment that is more optimistic than expected and is also a reflection of our strong omnichannel readiness. We could not have achieved this position without the improvements our teams have made to our stores, our digital platform, fulfillment and distribution centers, and our support offices. This result is particularly notable given the negative impact of shipping availability issues beyond our control. “
He said stock levels were “satisfactory” for the summer and back-to-school period but due to delays in shipping and increased demand, there could be delays in the delivery of winter products.
He said the group expected the mid-year net cash balance to be better than the fiscal year 20 year-end position of $ 168 million.
