MHJ, KMD, WHS- Why are these 3 NZX retail stocks making the headlines?

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MHJ, KMD, WHS- Why are these 3 NZX retail stocks making the headlines?

retail stocks
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Highlights

  • NZ’s card spending rose in April 2022
  • Michael Hill International to sell its Canadian Consumer Credit Book to Flexiti
  • The Warehouse Group posts impressive FY22 Q3

The retail sector is a key contributor to a nation’s GDP and is a significant economic power booster in promoting long-term development. Moreover, it offers several job opportunities, apart from performing marketing functions and offering consumers access to a wide range of products and services.

Talking from NZ’s perspective, the country witnessed a continuous rise in its card spending in April 2022, cites Stats NZ. Debit and credit card spending climbed 7% to NZ$551 million during the month as the country moved to the Orange setting.

The increase was seen across all categories like consumables, apparel, durables and hospitality.

With this overview, let us look at the three NZX-listed retail stocks worth looking at this month.

 NZ retail stocks- MHJ, KMD, WHS

Source: © Seenivas | Megapixl.com

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

Michael Hill International Limited, the famous international multi-channel retail jewellery chain, has a market cap of NZ$458 million.

Must Read: KPG, SCL, MHJ: 3 under-$5 NZX stocks that are grabbing investors' attention

A few days ago, the Company announced selling its Canadian Consumer Credit Book to Flexiti Financial Inc., a consumer credit provider in Canada, thus offering the facility of third-party consumer credit across all MHJ’s Canada-based stores.

Proceeds received from the said sale will enhance Michael Hill’s balance sheet as well as strengthen its cash position and, at the same time, will bolster its Canadian offering, providing access to a broader customer base.

On 17 May, at the time of writing, MHJ was jumping 3.51% at NZ$1.180.

KMD Brands Limited (NZX:KMD; ASX:KMD)

KMD Brands Limited is an NZ-based outdoor, lifestyle and sports company, having a market cap of more than NZ$843 million.

Must Read: PFI, WBC, KMD: 3 dividend stocks to watch out for in coming weeks

Recently, KMD announced that John Harvey, its non-executive Director, will seek a departure from the Company on 31 May.

It is noted that Harvey, who was the Chair of KMD’s Audit and Risk Committee and has been a founding director, has won plaudits for his immense knowledge and significant contribution to the Company.

In his place, Abby Foote will take charge as Chair of the Audit and Risk sub-committee.

On 17 May, at the time of writing, KMD was down 0.84% at NZ$1.180.

The Warehouse Group Limited (NZX:WHS)

One of the largest retail brands operating across the Kiwi nation is The Warehouse Group Limited, which boasts a market cap of nearly NZ$1.20 billion.

A few days ago, the Company shared its FY22Q3 trading update, wherein its online sales saw a growth of 7.4% on pcp and amounted to NZ$86.6 million, which represented 11.2% of the total Group sales.

Also Read: WHS, KMD - A peek into 2 retail stocks amid supermarkets’ price competition

However, despite an improvement in foot traffic numbers ever since the country shifted to an orange traffic light setting, WHS’s group sales during the said period were recorded at NZ$771.6 million, which was slightly down as compared to FY21Q3, majorly on account of rising inflation affecting consumer spending, shipping delays, etc.

Further, it expects to release its FY22 performance on 28 September.

On 17 May, at the time of writing, WHS was rising 0.87% at NZ$3.460.

Bottom Line

The NZ retail sector is making continuous efforts to minimise effects of ongoing supply chain disruptions and inflationary conditions.

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