While David Jones (ASX: DJS) and Myer (ASX: MYR) will almost certainly play a major part in the shopping plans of many consumers this Christmas, the constant margin pressure from online sources may mean that compared to last year, sales and earnings could struggle to register meaningful growth for the department store operators.
In comparison, the following three stocks should not only experience the usual seasonal uptick in demand but their outlooks are also reasonably positive. As investments, they offer festive cheer that may flow through into 2014 for investors.
Treasury Wine Estates (ASX: TWE) is one of the largest wine companies in the world with over 80 brands including Rosemount and Penfolds. With the shares trading at close to their 52-week low but the outlook for a good vintage and demand from China strengthening, Treasury Wines could be worth a closer look by investors looking for an attractively priced company.
Gage Roads Brewing (ASX: GRB) is engaged in brewing beer both on contract and for the production of company-owned products. Summer time and the festive season not only provide a season upswing in demand for beer consumption but given the relatively new nature of many of the beers produced by Gage Roads this period provides an opportunity for marketing and improving customer awareness.
Coca-Cola Amatil (ASX: CCL) not only sells more refreshing carbonated beverages during the warmer months but the firm has also just re-entered the beer market which means this festive season will be the first time the company will report earnings from its newly established beer division.
Foolish takeaway
For retailers, the seasonality of Christmas is obviously a yearly event which is factored in by investors into a company's overall profitability. The three beverage companies outlined above are all entering that yearly seasonal period however they are also positioned to grow their sales revenue meaningfully above the usual seasonal swing.
