Wellington, Sept 12 NZPA - Retailer The Warehouse Group has posted a 21 percent fall in annual net profit to $90.8 million, hit by economic slowdown and pressure on household budgets.

The profit for the year to July 27 compared to $114.8m the previous year and was made on group sales down 1.5 percent to $1.74 billion.

Chairman Keith Smith said the result, while below last year, needed to be viewed in light of the slowdown in economic activity and the financial pressures being brought to bear on New Zealand households, the impact of which had been felt by all retailers.

The company said net profit after tax, excluding unusual items was down 17 percent from the previous year to $80.9m.

A final fully imputed dividend of 5.5 cents per share will be paid, bringing the total dividend for the year to 21cps, 3.5cps higher than the previous year.

Chief executive Ian Morrice said uncertainty was likely to be a feature of the New Zealand economy for some time and he expected the retail environment to remain subdued during the next 12 months.

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