- NZ retail sector navigated successfully through the pandemic, with online sales getting a boost.
- Michael Hill International, in its FY21Q4 trading update, noted full-year EBIT to be in line with the expectations.
- Cooks Global Foods published its annual report reflecting a decline in total group revenue from continuing activities due to COVID-19.
New Zealand’s retail sector is marked with vibrant high streets, and town centres, which is crucial to the NZ communities. Though impacted by the initial lockdowns across the country, the retail sector was soon revived by cashing on to the digital medium amid the pandemic, with online sales reaching new heights.
As per reports, the total retail sales volume for March 2021 quarter climbed 2.5% compared to the December quarter. Moreover, the total value of the retail sales grew 2.5%, amounting to NZ$648 million in the said quarter.
In the light of the above background, let us look into the top 5 NZX listed retail stocks.
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Michael Hill International Limited (NZX:MHJ)
The famous jewellery retailer Michael Hill International Limited, in its FY21Q4 trading update, revealed that the same-store sales for the quarter as well as for the year grew 7.5% and 8.6%, respectively, on pcp.
MHJ witnessed its digital sales exceeding $30 million in FY21. Also, the Company's loyalty program now boasts of more than 750,000 members.
Underpinned by strong business performance and a net cash position of about $70 million towards the year-end, MHJ maintains a strong balance sheet. Moreover, it anticipates its full-year EBIT to be in line with its expectations.
On 30 July, at the closing bell, Michael Hill International was flat at NZ$0.920.
Kathmandu Holdings Limited (NZX:KMD)
The well-known retail chain, which specialises in apparel and sports equipment is Kathmandu Holdings Limited. It had provided a trading update following the recent lockdowns across Australia, which resulted in numerous store closures. Hence, its underlying EBITDA and group total sales for FY21 are anticipated to be around $120 million and $930 million, respectively.
Other than the pandemic-related disruptions, KMD had a solid start to the winter season, with both its brands, Rip Curl and Oboz, performing well.
At the market close, Kathmandu Holdings fell by 2.14% at NZ$1.37, on 30 July.
The Warehouse Group Limited (NZX:WHS)
The Warehouse Group Limited is NZ’s largest general merchandise retailer.
In order to facilitate the sale of 9% shareholding of Cash Wholesalers Limited, Wardell Bros & Coy Limited, and Foodstuffs Auckland Nominees Limited in WHS, the Company had entered into a trading halt in May 2021. Upon the successful completion of the sale, the halt was lifted, and its shares resumed trading.
On 30 July, at the end of the trading session, The Warehouse Group remained dipped by 0.29% at NZ$3.440.
Cooks Global Foods Limited (NZX:CGF)
Owner of the UK-based Triple Two Coffee business, Cooks Global Foods Limited, is an integrated retail group supplying food and beverage across the world.
The Company published its 2021 Annual Report on 30 July for the 12-month ended 31 March. During the period, Cooks Global Foods’ borrowings rose from $5,522 to $7.507 on pcp. Total group topline from operating activities declined by 59% to stand at $1,714 million. Net loss before ax from continuing activities stood at $2,618 million, reflecting a slight improvement on pcp.
Throughout the period, the ongoing pandemic affected the markets, which resulted in the delays towards opening program and store development.
On the outlook front, the Company mentioned that it was laying emphasis on maintaining the growing business in core markets and cutting down costs to survive the uncertain period. Cooks Global would tap prospects that might appear in the coming months.
The shares of Cooks Global Foods were up by 2.50% at NZ$0.041, on 30 July, at the market close.
Briscoe Group Limited (NZX:BGP)
Operating in the homeware and sporting goods retail segment, Briscoe Group Limited is the owner of the famous brands, namely Briscoes Homeware, Living & Giving, and Rebel Sport.
In its Annual Shareholder Meeting, resolutions were passed for the re-election of Dame Rosanne Meo and Mark Callaghan as the Directors of the Company. Moreover, its Board has been authorized to fix the remuneration of PricewaterhouseCoopers, the Company’s auditor.
On 30 July, Briscoe Group rose by 0.35% at NZ$5.70, at the end of the market session.