Warehouse Group (NZSE:WHS) Returns To TTM Profit And Tests Turnaround Narratives

Warehouse Group (NZSE:WHS) has just posted its H1 2026 scorecard, with trailing twelve month revenue of NZ$3.1b and basic EPS of NZ$0.003, while the latest reported half year, H2 2025, showed revenue of NZ$1,479.5 million and a net income loss of NZ$14.6 million. Over recent halves, revenue has moved from NZ$1,404.9 million in H2 2024 to NZ$1,607.2 million in H1 2025 and then to NZ$1,479.5 million in H2 2025, with EPS swinging between a loss of NZ$0.074, a profit of NZ$0.034, and a loss of NZ$0.042 as the business absorbs a NZ$5.0 million one off hit. For investors, the latest numbers point to a business that is edging back toward profitability but still working through pressure on margins.

See our full analysis for Warehouse Group.

With the headline figures on the table, the next step is to see how these results line up with the most common Warehouse Group storylines, highlighting where the numbers back the narrative and where they push back against it.

See what the community is saying about Warehouse Group

TTM profit barely positive at NZ$1.2m

• On a trailing twelve month basis, Warehouse Group earned NZ$1.2 million of net income on NZ$3.1b of revenue, which translates into a slim profit after losses of NZ$13.9 million and NZ$2.8 million in the prior TTM snapshots.
• Analysts' consensus view is that the company is refocusing on core brands and cost control, and this very small profit:
  • Lines up with the story that divesting underperforming businesses and tightening expenses can move the group from a TTM loss to a TTM profit, even if the margin is tiny so far.
  • Also sits beside a history of net income losses of NZ$25.7 million and NZ$14.6 million in H2 2024 and H2 2025, which means the return to profit is recent and still needs to be tested over more periods.

Five year earnings slide vs 81% growth forecast

• Over the last five years, earnings are reported to have declined by about 48.3% per year, yet forecasts point to earnings growing at about 81% per year from this low base.
• What stands out for the bullish narrative is the gap between that long run decline and the strong growth forecast:
  • Bulls point to cost reductions, systems modernisation and a focus on higher margin home and apparel as reasons earnings could ramp from a small profit today, which fits with the move from a TTM loss to a TTM profit of NZ$1.2 million.
  • At the same time, the past pattern of losses, including NZ$25.7 million and NZ$14.6 million net income losses in H2 2024 and H2 2025, gives bears a clear reference point when they question how quickly that 81% growth can be delivered.

Bulls argue that if earnings do grow from this low base, today's tiny profit could look like an inflection point rather than a blip, and the full bullish case sets out what would need to go right for that to play out 🐂 Warehouse Group Bull Case.

Low 0.1x P/S and DCF fair value of NZ$0.72

• The shares trade on a P/S of 0.1x versus peers on 0.8x and the global multiline retail industry on 0.9x, while the share price of NZ$0.695 sits slightly below a DCF fair value of NZ$0.72 and below the allowed analyst target reference of NZ$0.95.
• Critics highlight that this discount comes with clear risk markers:
  • A one off NZ$5.0 million loss is flagged in the last 12 months, which affects reported profitability and makes the small TTM net income of NZ$1.2 million more complicated to interpret.
  • The five year earnings decline of about 48.3% per year and past net income losses in recent halves provide context for why the market may be assigning a lower P/S multiple despite the DCF fair value sitting slightly above the current price.

Skeptics warn that a low P/S and a price below DCF fair value can linger if earnings stay patchy, and the bearish case walks through how past losses and restructuring costs could keep weighing on the story 🐻 Warehouse Group Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Warehouse Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed signals around earnings, valuation and margins, it helps to look at the underlying data yourself and decide what matters most for your portfolio. To weigh the balance of concerns and potential upside, review the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Warehouse Group is working with very slim profits, past net income losses and a long reported earnings slide, which leave its recovery story still unproven.

If you are uneasy about that patchy track record and want ideas with more resilient financial profiles, check out 277 resilient stocks with low risk scores to compare companies that may offer a steadier ride.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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