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Are these the best retail shares on the ASX?

The retail sector has certainly not been an easy place to invest over the last few years, but I wouldn’t let you put that off.

After all, there are many quality retailers that continue to deliver results above expectations.

In my opinion, three of the best retail shares right now are as follows:

Accent Group Ltd (ASX: AX1)

Accent Group, formerly known as RCG Corporation, is a footwear retailer responsible for the Athlete’s Foot, HYPE DC, and Platypus Shoes brands. I like the company because of its exclusive license to sell certain popular brands such as Vans and Timberland in the Australian market. If the popularity of these brands remains strong, then Accent could grow its earnings and dividend at a solid rate over the coming years.

Kogan.com Ltd (ASX: KGN)

This e-commerce company could be one of the best options in the retail sector. I have been thoroughly impressed with the performance of its business since its IPO and have been pleased to see it expand into multiple new areas. The recent announcement relating to offering white goods and built-in kitchen appliances is another potential revenue generator. Its shares are changing hands on lofty multiples, though, so could be exposed to meaningful downside risk if its growth slows.

Lovisa Holdings Ltd (ASX: LOV)

My favourite retail share on the Australian market would have to be Lovisa. Like Kogan, its shares have been on a tear of the last 12 months and means they change hands at a reasonable premium to the market average. But given the significant runway for growth that the company has from its expansion into Asia, Europe, and the United States, I’m optimistic that it will deliver long-term growth that justifies this premium. However, it might be prudent for investors to consider waiting for a potential pullback to get in at a lower price.

In the meantime, I believe these mid cap growth stocks are in the buy zone today.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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