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- People across the globe indulged in digital retail shopping in the testing times of the deadly coronavirus pandemic.
- Me Today partnered with Irish retailer, Uniphar Wholesale, and with Australia’s, Adore Beauty Group, to increase its sales and global presence.
- During 2H21, Cavalier Corporation intends to introduce new marketing campaign for its Bremworth brand, and the Company would continue to expand its retail segment.
The world all over has witnessed lockdowns and restrictions in the initial months of 2020, with the dangerous COVID-19 hovering over almost every nook and corner. As a result, businesses, companies, offices, markets, salons, schools and colleges were all closed, confining people to their homes.
However, this did not curb the shopping instincts of people. With new technological innovations and trends in place, people could now shop from home with a mere click of a button.
Physical presence at the stores paved the way for online shopping; swiping POS machines with plastic cards gave way to multiple payment and innovative gateways. Many companies allured customers with 'contactless deliveries' and 'buy now, pay later' features.
This COVID-19 era saw the emergence of the e-commerce sector like never before. People are buying things online, which are costing as low as a $ (please mention the figure) and even staples like stationery, groceries, etc, a trend which was not seen before.
Source:© Imtmphoto | Megapixl.com
As per Mastercard’s report, almost $900 billion extra were splurged in online retail shopping in 2020 i.e. for every $5 spent on retail, e-commerce constituted almost $1.
Moreover, it was observed that 50%-70% of Kiwi shoppers went for additional goods when going for online shopping.
With this backdrop, let us now look at 5 NZX retail stocks and go through their latest updates.
Me Today Limited
Me Today Limited (NZX:MEE) is NZ's leading lifestyle and wellness company. Recently, the Company has declared its distribution deal with Irish retailer Uniphar Wholesale Limited. By September 2021, Me Today’s products are expected to hit the Irish shelves through Uniphar’s distribution channel.
The Company has also announced an agreement with Adore Beauty Group Limited, an Australian retail group.
Michael Kerr, MEE's CEO, opined that partnering with the above-mentioned groups would promote as well as enhance the sales of Me Today's products across Australia and Ireland.
With these new partnerships, the Company anticipates total yearly revenue to be not less than NZ$3 million by the end of March 2022.
On 14 April, Me Today ended the day's trading session, down by 1.23% at NZ$0.080.
Kathmandu Holdings Limited
Kathmandu Holdings Limited (NZX:KMD) disclosed an impressive performance in an investors’ call held in March 2021. Despite being impacted by COVID-19 and witnessing store closures, the Company reported an underlying EBITDA of NZ$48.2 million in FY21H1 with a statutory NPAT of NZ$22.3 million. Its iconic brand ‘Rip Curl’ delivered a strong performance owing to the diversification strategy of the group.
Its total group sales climbed to NZ$410.7 million, up 12.9%. It is noticed that its online group sales jumped to 12.7% as compared to 8.8% on pcp.
The Company has declared an interim dividend of 2.0 cps, which is payable on 4 June 2021.
On 14 April, Kathmandu Holdings ended the day's trading session, down by 0.71% at NZ$1.420.
Cavalier Corporation Limited
Cavalier Corporation Limited (NZX:CAV) reported a strong FY21H1 performance amidst the tough COVID-19 times. Its PAT rose to NZ$4.3 million, which was majorly because of the gain on sale of Auckland-based land and enhancement of NZ$3 million in underlying business performance owing to increased woolen carpet sales.
As a result, by the year end, CAV's cash surplus stood at NZ$26.3 million. Also, it had launched a new carpet brand ‘Bremworth' and also came up with a Lifestyle collection, plus distinctively designed products during the 1H21 period.
Further, in 2H21, the Company plans to launch a new marketing campaign for its Bremworth brand and continue to expand its retail segment in Australia.
The Company remains focused on efficient and effective capital management with zero debts and sales expansion.
On 14 April, Cavalier Corporation ended the day's trading session, down by 1.43% at NZ$0.355.
Michael Hill International Limited
Michael Hill International Limited (NZX:MHJ) delivered strong results with 66.9% rise in EBIT at NZ$58.9 million and statutory NPAT of NZ$39.0 million for FY21H1.
The Company faced store closures and the loss of trading days due to COVID-19. As a result, its operating revenues stood at NZ$319.9 million, down 2.9% during the period.
However, with technological advancement, its digital sales saw a tremendous growth by 102%, amounting to NZ$18.5 million.
MHJ has declared an interim dividend of AU 1.5 cps for FY21H1.
On 14 April, Michael Hill International ended the day's trading session, up by 6.41% at NZ$0.830.