Temperatures across the country were colder in May than in the same month last year, particularly in Auckland, but they proved of little help to apparel retailers, Forsyth Barr broker Suzanne Kinnaird said.
Colder temperatures were typically positive for apparel retailers moving into the winter season, but that did not show in the data released for electronic card transactions.
Statistics New Zealand did not release category specific spending and Ms Kinnaird expected winter-related apparel categories to have experienced stronger growth rates than the sector average in May.
However, despite the colder start to the winter season, overall apparel spending was flat in May.
The broader apparel category includes fashion, jewellery, childrenswear, outdoor apparel and footwear.
''Within this category we expect varying growth rates, with winter-related product likely to be experiencing stronger growth rates.''
Niwa forecasts provided little certitude on what to expect for the remainder of winter weather, Ms Kinnaird said,Outlook statements said ''temperatures are most likely to be average or above average for all regions of New Zealand, although cold snaps and frosts can be expected in some parts of the country as autumn advances to winter''.
To date in June, it had been colder on average than last year, particularly in Auckland.
Forsyth Barr's preferred picks in the retail sector were Kathmandu and Michael Hill.
Both were rated outperform, reflecting a favourable view of medium-term outlook and growth opportunities.
Kathmandu was seen as a high-risk value play at current levels, but Forsyth Barr was backing an earnings recovery.
Briscoe Group and Restaurant Brands were rated as neutral.
Both were strong operators in growing segments but that was already factored in by the market.
Hallenstein Glasson was rated as neutral, given the gross margin risks and structural pressure from online sales.
The Warehouse Group was rated as underperform, given earnings pressures, Ms Kinnaird said.
