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) provided first-time operating profit (pre-IFRS 16 EBIT) guidance of NZ$20mNZ$24m, meaningfully above both our (NZ$11m profit) and consensus (~NZ$17m) estimates.</li><li>While an improvement versus expectations, guidance still implies an operating loss between NZ$3mNZ$7m in 2H26.</li><li>Gross margin improvement in Red Sheds was the key beat versus our expectations, though little colour was provided on the drivers or sustainability of the margin uplift.</li></ul>

The Warehouse Group (WHS) provided first-time operating profit (pre-IFRS 16 EBIT) guidance of NZ$20mNZ$24m, meaningfully above both our (NZ$11m profit) and consensus (~NZ$17m) estimates.While an improvement versus expectations, guidance still implies an operating loss between NZ$3mNZ$7m in 2H26.Gross margin improvement in Red Sheds was the key beat versus our expectations, though little colour was provided on the drivers or sustainability of the margin uplift.

The Warehouse Group a Lighter Shade of Red