Shares of a number of Australia's retailers have continued to benefit today following the release of yesterday's upbeat retail figures for the month of September.
As highlighted by my colleague Mike King, the Australian Bureau of Statistics data showed a 1.2% rise in total retail sales for the month, bolstered by a 4.1% increase in the household goods sector and a whopping 9.2% increase in electrical goods sales. This the ABS largely attributed to the release of Apple's iPhone 6 and iPhone 6 Plus models.
Perhaps one of the most pleasing points to take away was that even when the electronics category was excluded, retail sales still rose 0.7%, which is perfect for our retailers in the lead up to the ever-important Christmas period.
JB Hi-Fi Limited (ASX: JBH) is one company in for a strong Christmas. While its shares have had a woeful year to date, with the stock down 26.7% since the beginning of 2014, they are now trading at just $15.72 and presenting as great value. While it has experienced strong sales in recent months, the company could be on track to beat analysts' estimates in the near-term, while its new HOME format stores should provide a foundation for solid growth in the years to come. Its 5.3%, fully franked dividend is simply the icing on the cake.
Super Retail Group Ltd (ASX: SUL) is also a great retail stock to buy now. The company, which owns brands such as sporting goods chain Rebel, Ray's Outdoors and BCF, has also endured a year to forget with the shares having lost nearly 50% of their value over the last 12 months. Although the company's Leisure Retailing division is still experiencing hardship, a review of its Ray's Outdoors and FCO businesses is underway, while reasonable earnings growth is anticipated over the coming years. Like JB Hi-Fi, Super Retail Group also offers a delicious 5.7% dividend, fully franked.
