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Highlights:
- In one month, seasonally adjusted total retail turnover has increased by 0.6%, according to an Australian Bureau of Statistics report.
- The ASX 200 Consumer Staples index has increased by 1.60% in one month.
- The ASX 200 index has surged by 8.29% in a month.
Many ASX-listed retail stocks have witnessed a surge in share price in the past month. For example, the share price of the Australian retail giant Coles Group Limited (ASX:COL) surged by 0.06% in the past month.
Worth mentioning here is that the ASX 200 Consumer Staples index (INDEXASX:XSJ) reported a rise of 1.60% in one month. On 2 November 2022, the index closed 0.49% lower, at 12,394.60 points. On a year-to-date (YTD) basis, the index has lost 9.24%, and the yearly fall is around 8.77%.
According to a report by the Australian Bureau of Statistics (ABS), the seasonally adjusted total retail turnover increased by 17.9% in September 2022 over the previous year. It increased by 0.6% over the previous month.
In terms of segment-wise performance, food retailing improved by 1%, clothing, footwear, and personal accessory retailing by 2%, and other retailing by 0.2%. However, household goods retailing fell by 0.8% and department stores by 0.4% over the previous month.
In line with this, let’s have a look at the recent performance of a few ASX-listed retail stocks, Coles Group Limited, Endeavour Group Limited, Metcash Limited, and GrainCorp Limited.
Coles Group Limited (ASX:COL)
Coles operates many retail chains, and its primary operation is the sale of groceries and food through its supermarket chain. On Wednesday, Coles’ shares closed 0.79% lower, at AU$16.31 per share, and recorded a rise of 0.06% in one month. On a YTD basis, the share price has dropped by 8.88%, and the yearly fall is around 6.85%. In the past six months, the share price has dropped by 11.84%.
Recently, the Coles Group released its first quarter sales results for financial year 2023 (FY23). In the ASX filing, the company said that supermarket sales had improved during the quarter.The sales revenue from the supermarket segment increased by 1.6% and gross retail sales by 2.3% over the previous year.
Group sales revenue increased by 1.3% and group gross retail sales by 1.9% over the previous year.
Endeavour Group Limited (ASX:EDV)
Image source: © Terovesalainen | Megapixl.com
Australian retailer Endeavour Group operates in the retail drinks and hospitality business. On 2 November 2022, the Endeavour share price closed 1.25% lower, at AU$7.12 apiece. With this, the share price has risen by 3.34% in one month. In the past 12 months, the share price has increased by 2.59%, and on a YTD basis, it has surged by 4.86%. The share price has corrected in the past six months by 6.56%.
The company recently reported a boost in its Hotels segment, which surged by 90.8% during the first quarter of FY23, compared with the previous period, while the Retail segment dropped by 6.2%.
Steve Donhue, the CEO and managing director of the Endeavour Group, said:
Metcash Limited (ASX:MTS)
Metcash deals with the food, liquor, and hardware market as a wholesaler to independent retailers. On Wednesday, Metcash’s share price closed 1.22% lower, at AU$4.04 per share. With this, the share price marked a rise of 4.39% in a month. In the past year, the share price has dropped by 2.88%, and on a YTD basis, it has dropped by 9.62%. In he past six months, it has declined by 15.83%.
The Australian retailer, in a trading update, reported that retail network sales of the company’s independent retailer reached around AU$30 billion in FY22. As per the update, the company processes approximately 10 million transactions each week and has more than 4,400 supplier partners.
During the first half of FY23, the group sales increased by 7.7%. In the food segment, sales increased by 2.6%, in the hardware segment sales increased by 17.1%, and in the liquor segment sales increased by 12%.
GrainCorp Limited (ASX:GNC)
The Australian agribusiness company GrainCorp manages oilseed and grain handling, processing, and storage assets in Eastern Australia. The company also offers an end-to-end supply chain globally, from origination to the end user.
The company recorded a fall of 3.15% in its share price on Wednesday and ended the trading session at AU$8.60 per share. Including today’s fall, GrainCorp’s share price has improved by 8.72% in one month. In the past 12 months, the share price has increased by 30.30%, and on a YTD basis, it has increased by 2.14%. However, in the past six months, it has dropped by 18.10%.
The company has not released any price-sensitive news in the last month. In August, the company upgraded its earnings guidance for the full year 2022, ending on 30 September 2022.
Earlier, the underlying EBITDA guidance was AU$590–AU$670 million. The company upgraded it to AU$680– AU$730 million. The underlying NPAT guidance was improved from AU$310–AU$370 million to AU$365–AU$400 million. GrainCorp said that the FY22 earnings guidance is dependent upon several factors, such as new crop sales, the timing of grain export, and weather conditions.
