How are 5 NZX retail stocks doing amid sharp rise in imports?

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How are 5 NZX retail stocks doing amid sharp rise in imports?

 How are 5 NZX retail stocks doing amid sharp rise in imports?
Image source: Bro Crock, Shutterstock.com

Highlights 

  • The monthly value of goods imports rose 26% in October 2021 to $6.6 billion, as per Stats NZ.
  • WHS will pay a final dividend of 17.5cps on 3 December due to its strong performance in FY21.
  • Kathmandu Holdings reported a 15.1% rise in total group sales on pcp in FY21.

Stats NZ revealed on Thursday that NZ’s monthly value of goods imports in October 2021 has increased 26% to $1.4 billion compared to the same month last year. The increase was driven by increases in mechanical machinery and equipment as well as vehicles, parts, and accessories.

The monthly value of goods exports also rose 12% to $5.3 billion in October 2021 as compared to October 2020.

Annual goods imports witnessed a rise of 16% on pcp to $67 billion, while goods exports rose 3.3% to $62 billion for the year ended October 2021. Subsequently, the annual goods trade balance saw a deficit of $4.9 billion.

On this note, let’s take a look at how these 5 retail stocks are doing.

 5 NZX Retail stocks and their details

Image source: © 2021 Kalkine Media, Data source- Refinitiv

Michael Hill International Limited (NZX: MHJ, ASX:MHJ)

Jewelry retailer, Michael Hill, posted a rise in all its metrics in FY21. In Q1 FY22, the Group achieved a 15.5% rise in same-store sales and an increase in margins of 100 to 200 bps across all markets.

RELATED READ: Michael Hill (NZX:MHJ): Which strategy updates were provided in AGM?

In comparison to Q1FY21, digital sales increased by 58.2% during the quarter, accounting for 9.4% of total sales. MHJ also declared a final dividend of A$3cps, taking the total dividend to A$4.5cps for FY21.

MHJ ended the day 1.59% in red to close at $1.24.

The Warehouse Group (NZX:WHS)

A leading retailer in NZ, the Warehouse Group provided its sales update for Q1 FY22. Group sales declined by 14.6% to $630.7 million while its gross profit margin dropped by 200bps to 32.9% for the 13 weeks to 31 October 2021 due to the COVID-19 impact.

DO READ: Which 2 NZX retail stocks to be explored before holiday season?

WHS is due to pay a final dividend of 17.5cps on 3 December, taking the total dividend to 35.5cps for the full year.

WHS ended the day 0.25% in green to close at $3.99.

Restaurant Brands NZ Limited (NZX: RBD) 

Restaurant Brands posted a 25.8% rise in its total year to date sales to $784.3 million on pcp and a 1.6% increase in sales to $243.6 million in Q3 as compared to the same quarter in 2020.

The increase in sales comes as stores’ closure in August and September in NZ was offset by another 2 months of trading from its recently acquired California business.

RBD ended the day 0.56% in red to close at $14.27.

Briscoe Group Limited (NZX:BGPASX:BGP)

Homeware, sporting goods, and retail sector retailer, Briscoe Group's revenues declined by 14% to $138.5 million in the 13 weeks ending 31 October 2021 on a pcp basis.

DO READ: How have 5 NZX retail stocks been faring amid falling sales?

All three BGP stores remained closed for the first three weeks of the shutdown, which began on August 18. The potential impact of these lockdowns was reduced in the quarter by a 98% rise in online sales.

BGP ended the day 0.59% in green to close at $6.84.

Kathmandu Holdings Limited (NZX:KMD)

Clothing and sports equipment provider for travel, Kathmandu Holdings, provided its annual meeting transcript on Thursday. The Group reported a 15.1% rise in total Group sales on pcp to $922.8 million and a 35.9% increase in EBITDA to $113.3 million in FY21. KMD also gained from a full 12 months of Rip Curl ownership in FY21.

ALSO READ: Kathmandu (NZX:KMD): Its online sales soars amid pandemic in Q1 FY22

However, the Group’s first quarter of FY22 was significantly affected by COVID-19-related closures, majorly in New Zealand, New South Wales and Victorian markets.

KMD ended the day 1.92% in red to close at $1.53.

Bottom Line

Retail companies have been significantly impacted due to COVID-19 lockdowns. However, the easing of COVID-19 curbs can help in improving their situation.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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