Consumer discretionary has been a tough space in FY22, but there are several ASX retail shares that have delivered big returns.
These companies have managed to defy waning consumer sentiment triggered by the rising cost of living.
The higher-for-longer inflation, interest rate hikes, and falling asset prices are major risk factors for the sector.
Small-cap ASX retail shares outperforming the big end of town
This explains why some of our biggest ASX retail shares have slumped by 20% or more in the past year. This includes the JB Hi-Fi Limited (ASX: JBH) share price and Wesfarmers Ltd (ASX: WES) share price.
However, there have been a number of retail gems at the smaller end of the market that have delivered double-digit returns in the past financial year.
I am not talking about illiquid micro-caps, where a single trade can drive their share prices into the stratosphere. These are ASX consumer discretionary shares with a market cap of at least $100 million.
The top-performing ASX retail shares in FY22
What’s more, you probably haven’t heard of some of these names. And in another blow to our Aussie ego, a few of these are New Zealand businesses listed on the ASX!
The best performing ASX retail share in FY22 is Mydeal.Com Au Ltd (ASX: MYD). The online retailer surged just over 60% over the financial year.
What really helped was Woolworths Group Ltd (ASX: WOW) buying an 80% interest in the company as opposed to operational growth. But a win’s a win!
The second top performer for the year is NZME Ltd (ASX: NZM). The Kiwi media and entertainment group managed to deliver a 41% increase in share value.
More Kiwis beating the Aussies
But NZME isn’t the only New Zealand media share to be shooting the lights out. In third spot is the SKY Network Television Limited (ASX: SKT) share price with its gain of around 32% for the year.
Adding insult to Aussie injury is New Zealand-founded jeweller Michael Hill International Ltd (ASX: MHJ). The ASX retail share jumped around 27% in value thanks to strong sales across all of the company’s markets and its ability to hold margins.
Meanwhile, the Supply Network Limited (ASX: SNL) share price isn’t far behind with a gain of around 24%. This is no doubt helped by the Australian and New Zealand auto parts retailer issuing a pleasing FY22 sales and profit guidance.