- NZ’s retail sector suffered a deep financial impact since the COVID-19 pandemic struck.
- Post COVID-19, retailers have been looking for a way out and are facing increasing supply chain, labour and input costs.
- Warehouse, Briscoe Group, KMD Brands are some of the top retailers listed on the NZX.
The retail industry is responsible for providing goods to end customers through channels like department stores, specialty stores, supermarkets, etc. Everything from fuel to fashion, electronics to grocery falls under the retail sector.
The sector is driven by consumer behaviour and is continuously changing to fulfil consumer demand, especially since the COVID-19 pandemic began. NZ retailers plunged into a deep financial and confidence crisis as COVID-19-induced lockdowns stopped people from visiting stores.
As the severity of the COVID-19 pandemic is dying down, retailers have been looking for a way out and are facing increasing supply-chain, labour and input costs.
Amid this background, let’s see how these 5 retail stocks listed on the NZX are performing.
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The Warehouse Group Limited (NZX:WHS)
One of the most-known retailers in NZ, The Warehouse Group, has a market cap of $1.16 billion.
The Group’s sales declined 2.5% in the Q3 ended 1 May 2022 on the same quarter in FY21. However, its online and grocery sales soared during the COVID-19 pandemic, resulting in an increase in sales in Q3 compared to the pre-COVID-19 pandemic phase.
WHS witnessed some improvements in foot traffic since NZ moved to orange settings on 14 April. Shipping delays, high inflation and changing customer preferences continue to impact the trading environment.
WHS ended the day 0.3% in red to close at $3.35.
Homeware and sporting goods retailer, Briscoe Group, has a market cap of $1.3 billion.
The Company began the year on a strong note, delivering 1.77% higher sales in the Q1 ended 1 May 2022 compared to Q1 of a year before. The group has adopted a deliberate strategy to securing stock in advance of the time it would traditionally land and expect it to continue the same in H1 FY22.
BGP remains on track to attain FY21’s NPAT and expects its gross profit margin to be higher than that of last year.
BGP ended the day 0.17% in red to close at $5.85.
Global outdoor, lifestyle and sports company KMD Brands has a market cap of $0.81 billion.
The Group registered sales of $407.3 million in H1 FY22 and underlying EBITDA of $10.2 million in H1 FY22, down from $410.7 million and $48.2 million in H1 FY21. The lower results came on the back of disruptions to the business caused by the COVID-19 lockdown.
KMD increased its interim dividend by 50% to 3cps, due to be paid on 30 June 2022. The Group expects a bright outlook ahead and plans to continue investing in building its local brands in coming months.
KMD ended the day 1.71% in red to close at $1.15.
Restaurant Brands NZ Limited (NZX:RBD)
One of the biggest restaurant chain operators in NZ, Restaurant Brands, has a market cap of $1.46 billion.
The Group reported a 19.7% rise in total sales of $1068.2 million and a 69.3% increase in NPAT of $51.9 million in FY22 compared to last year. Its Taco Bell brand added 18 stores in NZ and Australian markets and the Group’s total store numbers stood at 359 at the end of FY22.
RBD paid a dividend of 32cps on 22 April
RBD ended the day 1.43% in red to close at $11.73.
Michael Hill International Limited (NZX:MHJ)
Michael Hill, a manufacturer and retailer of fine jewellery across regions, has a market cap of $0.43 million.
The Group delivered robust results in Q3 FY22, delivering an 11.1% increase in store sales and a 4.8% rise in same store sales on pcp. MHJ posted a 31.1% growth in digital sales YTD and a margin growth of 200 to 300 bps in the period.
The business remains focused on delivering key strategic priorities and discovering digital expansion prospects in new territories.
MHJ ended the day flat to close at $1.12.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)