Stocks in focus as NZ’s retail spending rises in August

Highlights:

• NZ’s retail card spending rose in August 2022.
• Michael Hill International to pay an interim dividend later this month.
• KMD Brands plans to release its full-year performance on 20 September.

According to the latest report by Stats NZ, New Zealand’s retail card spending was up 0.9% to NZ$55 million in August 2022, in comparison to July 2022, mainly attributed to increased spending on consumables such as groceries and liquor. However, card spending on fuel continued to dip in August 2022.

Nonetheless, total card spending witnessed 32.5% Y-o-Y growth when compared to August 2021. It must be noted that last year, during this time, the country was under alert level 4 lockdown and spending on non-essential items, restaurants, etc., was significantly reduced, which later bounced back when countrywide restrictions eased a bit.

That said, let us look at the three retail stocks listed on the NZX, namely, Michael Hill International, KMD Brands and Briscoe Group.

Source: © Igorbukhlin | Megapixl.com

Michael Hill International Limited (NZX:MHJ)

Michael Hill International Limited is one of the most sought-after jewellery destinations among jewellery lovers and has NZ$497 million as its current market capitalisation.

The company's operating revenue climbed 7% and statutory NPAT rose by 13.9%, respectively, on pcp, on the back of operational performance, sale of the Canadian credit book, and strategic initiatives. It has announced a final dividend of AU4.0 cps to be paid on 23 September, taking the full-year dividend to AU7.5 cps.

On 9 September, at the time of writing, Michael Hill International is rising 0.78% to NZ$1.290.

KMD Brands Limited (NZX:KMD)

A well-known global outdoor, lifestyle and sports company, KMD Brands Limited, has a market cap of about NZ$754 million.

It plans to release its full-year results on 20 September, followed by a briefing session to be conducted for investors and analysts. KMD has urged those shareholders who are eligible to attend and vote at the Annual Meeting to send director nominations latest by 16 September.

On 9 September, at the time of writing, KMD Brands is down 1.89% to NZ$1.040.

Briscoe Group Limited (NZX:BGP)

Briscoe Group Limited is a well-known retailer of homeware and sporting goods having NZ$1.2 billion as its market capitalisation.

During its second trading quarter ended 31 July 2022, BGP reported sales worth NZ$191.7 million, up 3.49% on pcp, majorly on account of strong online sales, despite escalating cost pressures, including food and fuel price increases, etc. It expects to publish its half-year performance on 14 September and intends to declare an interim dividend too.

On 9 September, at the time of writing, Briscoe Group is up 0.19% to NZ$5.400.