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Highlights
- Card spending rose by $656 million in October compared to last month.
- HLG advised that Group sales witnessed a rise of 21.9% for the full year ended 1 August 2021.
- KMD’s same store sales were impacted due to COVID-19 lockdowns.
As per the latest statistics released by Stats NZ, Kiwis spent $645 million more on their credit and debit cards in October compared to last month.
Rick Ho, business performance manager, stated that the rise showed that people were getting their credit cards out with spending levels starting to be back at levels before level 4 lockdown in August 2021.
The easing of restrictions in some regions in October permitted some stores to open for non-essential shopping.
Amid this backdrop, let’s have a look at how these 5 NZX retail stocks are performing.
Image source: © 2021 Kalkine Media, Data source- EODHD/Others
Briscoe Group Limited (NZX:BGP; ASX:BGP)
Briscoe Group provided a Q3 sales update on 5 November. The Group’s sales declined by 14% on pcp to $138.5 million for the 13-week period ended 31 October 2021.
RELATED READ: How did Briscoe (NZX:BGP) perform in third-quarter 2021?
All 3 stores of BGP remained closed in the first 3 weeks of the lockdown that began on 18 August. However, a growth of 98% in online sales in the quarter minimised the potential impact of these lockdowns.
BGP remains confident of producing an NPAT of above $73.2 million and up to $85 million.
BGP ended the day 2.22% in green to close at $6.9.
The Warehouse Group Limited (NZX:WHS)
The Warehouse Group released an update notifying about an article in the NZ Herald that stated Warehouse founder Stephen Tindall and Briscoes boss Rod Duke expected a boom in the future.
ALSO READ: Four NZX retail stocks to explore in November 2021
The Group informed that the comments made by Sir Stephen Tindall on the current and future trading are his opinions and are not based on any non-public information.
WHS will release its Q1 sales numbers on 12 November and will hold its AGM online on 26 November.
WHS ended the day 2.25% in green to close at $4.09.
Kathmandu Holdings Limited (NZX:KMD)
Kathmandu Holdings, a clothing and equipment provider for travel and adventure, provided a trading update on its virtual investor day.
Interesting Read: Kathmandu (NZX:KMD): Which brands do the Company own?
KMD’s same store sales were significantly affected by COVID-19 lockdowns or the 13 full weeks to 31 October 2021 with Rip Curl sales declining 9.4% after +1.6% adjustment for the COVID-19 lockdown and Kathmandu sales declining 17.6% overall after +16.3% adjustment for the same.
However, KMD’s online sales witnessed a rise of 33.8% for the period. Net COVID-19 impact is expected to result in Q1 operating profit being c.$35 million below last year.
KMD ended the day 0.64% in red to close at $1.56.
Hallenstein Glasson Holdings Limited (NZX:HLG)
Hallenstein Glasson, a retailer for menswear and womenswear, provided an annual report for the year ended 1 August 2021. HLG reported that Group sales rose 21.9% on pcp to $350.76 million while audited NPAT rose 20% on pcp to $33.32 million.
ALSO READ: Do 4 NZX penny stocks have potential to be multibaggers?
The Group’s sales in NZ rose 16.88% to $119.91 million for the year. HLG continues to take steps to preserve liquidity, most importantly managing stock levels and costs across the business.
HLG ended the day 0.14% in red to close at $7.06.
Michael Hill International Limited (NZX: MHJ, ASX:MHJ)
Jewellery retailer Michael Hill reported outstanding results for FY21, with significant increases in NPAT and EBIT when compared to FY20.
RELATED READ: Michael Hill (NZX:MHJ): What were the highlights of Annual General Meeting?
MHJ saw a 15.5% increase in same-store sales and a 100 to 200 basis point increase in margins in all of its markets in Q1 FY22 compared to Q1 FY21. To meet its growth and transformation goals, the Company has a robust financial sheet and a high-performing leadership team.
MHJ ended the day 1.75% in green to close at $1.16.
Bottom Line
Retailers are cheerful about the news of further easing of restrictions in Auckland later this month. However, many businesses are still grappling with low demand amid the lockdown.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
