New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Warehouse Group Limited / Equity Bottom-Up

<ul><li>The Warehouse Group (WHS) reported an improved 1H26, underpinned by stronger cost control.</li><li>We are now confident that run-rate cost-out action to date and ongoing cost discipline should see the business return to a cost-of-doing-business (CODB) less than 31% of sales over the medium term.</li><li>However, we also come away from the result less confident in WHS’ 34% gross margin target, with Red Sheds in particular under significant gross margin pressure (down -110bp year-on-year).</li></ul>

The Warehouse Group (WHS) reported an improved 1H26, underpinned by stronger cost control.We are now confident that run-rate cost-out action to date and ongoing cost discipline should see the business return to a cost-of-doing-business (CODB) less than 31% of sales over the medium term.However, we also come away from the result less confident in WHS’ 34% gross margin target, with Red Sheds in particular under significant gross margin pressure (down -110bp year-on-year).

The Warehouse Group 1H26 Result—Getting The Whare In Order