AUS
NZ
UK
CA
USA
IND
.jpg)
Highlights
- Card spending in the retail industry rose by 3% in January 2022 compared to previous month, as per Stats NZ data released on Friday.
- KMD expects its H1 FY22 EBITDA to be between $9 million-$11 million.
- MHJ is due to release its H1 FY22 results on 23 February 2022.
The latest statistics from Stas NZ revealed that credit and debit card spending witnessed a rise of 2.1% in January 2022 compared to December 2021, after making adjustments for seasonality.
Card expenditure stayed stable in all groups with spending in retail industries rising by 3% in January compared to previous month. The durables industry that includes hardware, furniture, electrical goods, etc., saw the highest increase of 3.3% on previous month, followed by fuel (+2.7%) and consumables (+1.8%).
Amid this backdrop, let’s look at how these 3 retailers are performing this month.
Image source: © 2022 Kalkine Media®, Data source- EODHD/Others
Kathmandu Holdings Limited (NZX:KMD; ASX:KMD)
Travel-related clothing and equipment provider KMD provided a trading update for H1 FY22 on Friday. The Group reported strong growth of 15.1% in same store sales in the period after its Australasian store network reopened in Q2 FY22 despite travel and COVID-19-related curbs. The Group’s YTD online sales also showed an increase.
RELATED READ: Kathmandu Holdings (NZX:KMD): How did it perform in H1 FY22?
While experiencing great growth last year, Rip Curl’s wholesale sales have risen, and retail sales are reaching projections. However, Oboz remains affected due to supply chain issues.
KMD expects H1 FY22 EBITDA to be between $9 million-$11 million.
Michael Hill International Limited (NZX:MHJ; ASX:MHJ)
Jewelry manufacturer Michael Hill reported a 9.6% rise in same store sales in Q2 ended 26 December 2021 compared to prior year. MHJ also delivered margin growth of 200-300 bps and a 28% increase in digital sales for the period.
ALSO READ; WHS, BGP, MHJ: 3 NZ retail stocks that can be followed amid NZ and AU borders opening
MHJ expects an EBIT of $49 million-$53 million for H1 FY22. Inventory managing was orderly, cost controls were tight, and sales were high, resulting in a comfortable cash position at the conclusion of the quarter. MHJ is due to release its H1 FY22 results on 23 February 2022.
Restaurant Brands NZ Limited (NZX: RBD)
RBD, a multi-site branded food retail chain manager, posted a 19.7% increase in revenue for the year ended 31 December 2021, taking total sales to NZ$1.06 billion. While same store sales were strong year-round, extra 8 months of business from the California acquisition added over NZ$100 million to annual sales growth.
DO READ: MFB, CVT: 2 NZX foods stocks that can be looked at in February 2022
In Q4 FY21, RBD recorded total sales of NZ$284 million (+5.5% on pcp).
Bottom Line
Despite increased retail card spending, there are significant headwinds facing the sector. NZ’s retail sector is facing increased costs and a drop in consumer confidence. Moreover, the recent rise in minimum wage has further disappointed NZ retailers that can also put jobs at risk.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)