Photo: SUPPLIED
Warm weather has melted The Warehouse Group's profit forecast.
The company has revised its pre-tax profits lower to a range of a $5 million loss to a $5 million profit for the year ending 3 August.
The company - known for its Red Sheds, Stationary and Noel Leeming brands - blamed low consumer confidence and a delayed winter for impacting winter sales, which had forced it into heavy discounting.
Nonetheless, interim chief executive John Journee said sales strengthened as soon as colder weather arrived.
"Now that the cold has set in, our sales momentum has returned with Q4 to date sales ahead of the same period last year," he said.
Despite the "encouraging" news, Journee said "the current market conditions are impacting margins", leading to the earnings downgrade.
The group said the timing of New Zealand's economic recovery remained uncertain, weighing on consumer discretionary spending.
The company will release its full-year results on 2 October.
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