Highlights
- Retail firms struggled during the pandemic due to store closures.
- As a result, companies have turned their focus to digital.
- Several Australian retail firms announced their latest earnings in last few days.
Ever since the COVID-19 pandemic negatively impacted businesses, companies have taken to digitisation to keep up with changing preferences of customers. Australian companies struggled during the pandemic due to store closures and human labour-related issues. As a result, the companies have turned their focus to digital in a big way to avoid any challenges in the future due to either supply chain delays or some geopolitical factor which directly or indirectly hampers supplies.
Experts see this digital transformation as a way ahead for these ASX-listed retail firms to survive in the worst scenario. Several Australian retail firms announced their latest earnings in last few days, with most appearing to have made sizeable gains in terms of earnings after facing challenges during the pandemic period. Many of these retailers have even announced an impressive hike in their dividends, making these stocks attractive to income investors.
On this note, let’s discuss how ASX-listed major retail shares have performed in this earnings season.
Bapcor Ltd (ASX:BAP)
Bapcor deals in automotive equipment and the service business. In FY22, Bapcor reported a revenue rise of 4.6%. The ASX-listed retailer’s pro forma earnings before interest, taxation, depreciation and amortisation (EBITDA) soared 4.3% and the net profit after tax (NPAT) gained 5.9% during the given fiscal. Bapcor’s board also declared an increase of 7.5% dividend per share to touch 21.5 cents per share. Bapcor didn’t share any specific guidance for the financial year 2023 with the ASX.
Meanwhile, Bapcor’s share price fell nearly 5% on a year-to-date (YTD) basis (as of closing on 26 August 2022, at 12:40 PM (AEST). In the past 12 months, the stock has dipped by over 7%. The past month’s gain by the stock stands at over 6%, while the shares have risen over 6% in the past six months.
JB Hi-Fi Ltd (ASX:JBH)
JB Hi-Fi retails consumer electronics and home appliances. In FY22, JB Hi-Fi reported a rise of 3.55% in total sales and nearly 53% growth in online sales. Earnings before interest and tax (EBIT) increased nearly 7% and the net profit after tax (NPAT) surged about 8%.
JB Hi-Fi reported a rise of nearly 8% in earnings per share (EPS). The board of JB Hi-Fi announced a 43% increase in final dividend to AU$1.53 per share. The total dividend for FY22 rose over 10% to AU$3.16.
JB Hi-Fi’s share price fell nearly 13% on a YTD basis. In the past 12 months, the stock has dipped over 7%. The past month’s gain by the stock stands at over 1%, while the shares have fallen nearly 14% in the past six months.
Super Retail Group Ltd (ASX:SUL)
Super Retail owns and operates several retail brands across Australia and New Zealand. Super Retail’s sales surged nearly 3% in FY22 on account of a robust performance in the second half of the fiscal. However, the company’s gross margin dipped to 46.8% from 48% and the net profit after tax (NPAT) dipped by nearly 20% during the period under review.
Super Retail’s operating cash flow dipped 43% in FY22. The board of Super Retail announced a fully franked dividend of 43 cents per share, taking the full-year dividend to 70 cents per share.
Super Retail’s share price rose nearly 0.5% on a YTD basis. In the past 12 months, the stock has dipped over 13%. The past’s month gain by the stock stands at over 8%, while the shares have fallen over 5% in the past six months.
Adairs Ltd (ASX:ADH)
Adairs retails homewares and home furnishings. In FY22, Adairs reported a nearly 13% rise in revenue against the previous corresponding period. The company’s net profit after tax (NPAT) declined nearly 30%.
The company’s online sales constituted 35% of the total sales, which was 4.5% more than the corresponding period of last year. Adairs’ board declared a 10% per share final dividend, taking the full year dividend to 18 cents per share.
Adair’s share price fell nearly 43% on a YTD basis. In the past 12 months, the stock has dipped over 38%. The past month’s gain of the stock stands at nearly 1%, and the shares have fallen over 19% in the past six months.
Nick Scali Ltd (ASX:NCK)
Nick Scali retails and imports furniture. Nick Scali’s revenue rose over 18% in the financial year 2022 compared to FY21. The company’s underlying earnings before interest and tax (EBIT) fell nearly 3%, Similarly, the underlying net profit after tax (NPAT) dipped about 5%.
Nick Scali’s earnings per share (EPS) stood at 92.5 cents, down from 104 cents per share. Nick Scali’s board announced a 40% rise in fully franked final dividend to 35 cents per share.
Nick Scali’s share price fell nearly 28% on a YTD basis. In the past 12 months, the stock has dipped nearly 8%. The past month’s gain of the stock stands at over 21%, and the shares have fallen over 6% in the past six months.
Endeavour Group Ltd (ASX:EDV)
Endeavour Group is focused on the drinks and hospitality business. Endeavour’s online sales grew 16.8% in the third quarter of FY22. The company hit online sales of over AU$1 billion annually.
Endeavour’s share price rose nearly 8% on a YTD basis. In the past 12 months, the stock has surged nearly 4%. The past month’s gain of the stock fell nearly 8%, and the shares have risen over 2% in the past six months.
Coles Group Ltd (ASX:COL)
In FY22, Coles announced that its COVID-19-linked prior year sales rose 2%, buoyed by a robust e-commerce performance in supermarkets and liquor cycling. Three-year headline sales growth stood at 12% in Supermarkets, 18% in Liquor and 8.1% in Express. The company’s comparable sales rose 3.7% in Supermarkets, 1.9% in Liquor, and 1.1% in Express in Q4FY22.
Coles’ share price fell over 1% on a YTD basis. In the past 12 months, the stock has risen nearly 0.5%. The past month’s fall is over 5%, while the shares have gained nearly 2% in the past six months.