Which are 5 attractive NZX Retail stocks to explore in 2021?

Highlights

  • A strong balance sheet noted by Kathmandu Holdings.
  • Hallenstein Glasson informs about store closures amid delta outbreak.
  • Michael Hill announces a virtual Annual Meeting to be held next month.

The retail stock industry has seen a lot of uncertainty in the past year and a half due to coronavirus pandemic-related effects. With border closures, lockdowns which meant shops being shut, and supply chain disruption, various retail stocks in the country have suffered.

While they are making progress in terms of recovery, the current delta variant-related level 4 lockdown in the country has again put matters in the grey area. See how the below-mentioned stocks have fared recently.

NZX listed retail stocks- HLG, KMD, BGP, MHJ, RBD

Image source: © 2021 Kalkine Media New Zealand Lt; data source: Refinitiv

Hallenstein Glasson Holdings Limited (NZX:HLG)

This company operates from over 120 stores in different parts of the country.

On 17 August 2021, the Company announced store closures in different parts of New Zealand. This was due to the COVID-19-related level 4 lockdown. Trading for essential items had continued through the online platform.

On 27 September 2021, at the time of writing, the Company was trading at NZ$6.98, down by 2.65%.

Kathmandu Holdings Limited (NZX:KMD)

This company is known for the retail of outdoor clothing and gear, especially for adventure travel.

In its FY21 annual results, strong sales performances were reported in Oboz and Rip Curl. Travel restrictions related to COVID-19 have impacted the business, while there has been growth witnessed in online sales. Also, NZ$37 million were recorded in net cash, indicating a strong balance sheet.

On 27 September 2021, at the time of writing, the Company was trading at NZ$1.550.

Also Read: A lens on 5 NZX retailers amid the prevailing lockdown

Briscoe Group Limited (NZX:BGP)

This dual-listed company works through three brands and 85 stores across geographies.

The Company recently announced its half-year results in which the total revenue was NZ$358,421, which was 22.6% higher than pcp, while the net profit was NZ$47,461, which was 69.6% higher than pcp.

Half Year Results announcement - NZX, New Zealand’s Exchange

On 27 September 2021, at the time of writing, the Company was trading at NZ$7.000, down by 0.57%.

Michael Hill New Zealand Limited (NZX:MHJ)

This company deals in fine jewellery such as bracelets, rings for more watches in different locations such as New Zealand, Australia, the United States, Canada.

It was recently announced that the Annual Meeting of the Company should be held virtually on 27 October 2021.

Read now: Are the 5 NZX retail stocks benefitting amid the pandemic?

On 27 September 2021, at the time of writing, the Company was trading at NZ$0.890, up by 1.14%.

Restaurant Brands New Zealand Limited (NZX:RBD)

This company with its headquarters in Auckland deals with various franchises such as Taco Bell, Carl's Jr, KFC, Pizza Hut and so on.

In the interim report released by the Company recently, total group sales were recorded at NZ$540.6 million, while the Net Profit After Tax was NZ$34.5 million and the EBITDA was NZ$89.9 million.

On 27 September 2021, at the time of writing, the Company was trading at NZ$15.510, down by 1.21%.

Also read: Broader NZ Market was Primarily Hammered by Selling Pressure in Financials and Consumer Stocks

Bottom Line

Uncertainty follows the retail sector because of the looming COVID-19-related threat. Retail companies are experiencing their share of ups and downs waiting for a turnaround.

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