Look at 5 NZX retail stocks amid a surge in Black Friday fake deals

Highlights

  • A new pricing site has revealed that some discounts in Black Friday sales may be broken deals.
  • The Warehouse Group’s Q1 FY22 sales were impacted due to the COVID-19 pandemic.
  • Hallenstein Glasson declared a final dividend of 24cps, due to be paid on 17 December.

Black Friday is the biggest sales day that falls on the first Friday after Thanksgiving Day. However, new research has revealed that some discounts offered may be broken trades.

A PriceSpy research revealed that near 20% of all products listed on it witnessed a price hike on Black Friday. This implied an increase of 7% as compared to previous year.

Over 1 in 10 products offered were discovered to be a false sale where an article’s price rose prior to the day of sale. This was done to make the price cut given on Black Friday seem better than it truly was.

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

5 NZX Retail Stocks and their financials

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

The Warehouse Group (NZX:WHS)

The Warehouse Group, a leading retailer in NZ, conducted its AGM on 26 November. The Group’s Q1 FY22 sales were impacted due to COVID-19 lockdown levels from 18 August while its FY21 capital expenditure was $85 million compared to $63.1 million in FY20.

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

The Board declared a final dividend of 17.5cps due to a strong performance in FY21.

WHS ended the day 2.82% in red to close at $3.79.

Briscoe Group Limited (NZX:BGPASX:BGP)

Homeware, sporting goods and retail sector dealer, Briscoe Group reported a robust quarter with a 14.97% rise in group sales for Q3 (2 August 2021–31 October 2021) and a 9.52% increase in YTD sales (1 February 2021–31 October 2021).

The Group expects an NPAT in the range of $73.2 million and $85 million despite substantial disruptions seen in Q3.

BGP ended the day 1.19% in red to close at $6.65.

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

Jewellery retailer, Michael Hill saw an increase in all of its indicators in FY21. In Q1 FY22, the Group saw a 15.5% growth in same-store sales and a 100 to 200 basis point gain in margins across all markets. The Company has a strong financial position and a high-performing leadership team to help it achieve its growth and transformation objectives.

RELATED READ: Which 4 NZX Retail stocks have online shopping platforms?

MHJ also announced a final payment of A$3cps, bringing the total payout for FY21 to A$4.5cps.

MHJ ended the day 2.46% in red to close at $1.19.

Kathmandu Holdings Limited (NZX:KMDASX:KMD)

Kathmandu Holdings, known for offering quality clothing and sports equipment, conducted its AGM on 23 November. The Group’s total group sales rose 15.1% to $922.8 million in FY21 on previous year.

Rip Curl reported strong sales growth in FY21 with online sales of 31.3% due to altering consumer preferences amid the COVID-19 lockdown.

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

The Group has a target to improve its underlying EBITDA margin to 15% of sales in the medium term.

KMD ended the day 1.35% in red to close at $1.46.

Hallenstein Glasson Holdings Limited (NZX:HLG)

Hallenstein Glasson, a retailer of menswear and womenswear, announced a final dividend of 24cps on 26 November. The dividend will be paid to all shareholders on 17 December 2021. The decision comes after all HLG’s stores across ANZ resumed trading.

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

HLG ended the day 0.82% in red to close at $7.3.

Bottom Line

The easing of COVID-19 restrictions can help in improving retail business sales and revenue.

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

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