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Highlights
- Both New Zealand and Australia have announced opening their country’s borders during the last week of February, giving hopes to the retail sector.
- The Warehouse Group expects increased HY22 NPAT owing to increased online sales and solid shipping and stock management controls.
- Briscoe Group to release its full-year performance in March 2022.
A week ago, New Zealand's PM Jacinda Ardern had announced a phased reopening of the country’s border from February-end onwards.
Initially, vaccinated Kiwis and visa holders from Australia can enter the country. Following this, vaccinated travellers from other countries including international students are allowed to enter Kiwiland and gradually other visitors.
On the other hand, Scott Morrison-led Australian Government has announced the reopening of AU borders from 21 February onwards.
The border opening of the two countries has been welcomed by both the NZ and AU retail and tourism sectors, hoping for the end of misery and revival of the two sectors, which bore the maximum brunt due to the pandemic.
Having said that, let us quickly walk through the three popular NZX retail stocks worth investing in.
Source: © 2022 Kalkine Media® data source- EODHD/Others
The Warehouse Group Limited (NZX:WHS)
The Warehouse Group Limited is one of the largest retailing groups operating across the Kiwi nation. A few days back, the Group issued its trading update for the five months ended FY22, highlighting its positive Christmas sales and a sudden increase in online sales.
Do Read: How will these 4 retail stocks fare amid expected price hikes? BGP, WHS, MHJ, KMD
WHS’ solid shipping and stock management controls helped it navigate successfully amid supply chains-related global disruptions.
As a result, it anticipates its HY22 NPAT to go beyond NZ$40 million and will publish the Group’s FY22 half-year results on 22 March.
On 8 February, at the closing bell, WHS dipped by 2.77% at NZ$3.160.
Briscoe Group Limited (NZX:BGP; ASX:BGP)
Another famous NZ retailer is Briscoe Group Limited, operating homeware and sporting goods segment. Recently, it had revealed its unaudited sales for the full-year period (52 weeks) ended 30 January 2022, wherein the Group witnessed a 6.08% increase in its sales to NZ$744.4 million on pcp which comprised 53 weeks.
Also Read: Briscoe (NZX:BGP): Is the Company’s strategic plan on track?
Further, BGP’s online sales jumped by over 21%, while Homeware and sporting goods sales grew by 4.93% and 8%, respectively, in the said period.
It will release its full-year performance, including the final dividend announcement on 16 March, and expects its full-year NPAT to be around NZ$87 million.
On 8 February, at the closing bell, BGP rose by 2.13% at NZ$6.230.
Michael Hill International Limited (NZX:MHJ; ASX:MHJ)
Known for manufacturing fine jewellery, Michael Hill International Limited has provided a business update for FY22Q2 ended 26 December 2021.
During the said quarter, MHJ's all store sales climbed by 9.8%, while same-store sales grew by 9.6% on pcp, underpinned by a highly engaging marketing campaign, robust supply chain and inventory management as well as deployment of new digital initiatives.
Related Read: Which 4 NZX diversified stocks can be considered for this year?
As a result, Michael Hill expects FY22H1 Group EBIT to be between NZ$49 million to NZ$53 million.
Moreover, the Company continued to experience margin expansion as well as brand elevation during the said duration.
On 8 February, at the closing bell, MHJ climbed by 4.08% at NZ$1.530.
Bottom Line
NZ’s retail sector is brimming with optimism following the announcement on the reopening of the country’s borders and is hopeful of the influx of shoppers from across the shores.