Why I would buy these top retail shares today

Amazon Prime may have launched in Australia this week, but I wouldn’t let that put you off investing in some of the country’s top retail shares.

While the likes of Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH) could be impacted greatly by the launch, I think the two shares listed below will continue growing their bottom lines at a solid rate.

Here’s why I like them:

Lovisa Holdings Ltd (ASX: LOV)

I think that this fast-fashion jewellery retailer is arguably the best retail share on the Australian share market. After conquering the local market Lovisa has expanded significantly internationally into market such as South Africa, Europe, and the United States. It is the latter market which I am most interested in. If Lovisa can replicate its Australian success in the United States, then I suspect it could more than double its store network over the next decade. It is early days, though, and I expect the company will update the market on its U.S. expansion when it releases its results in August. While I think it is in the buy zone today, it may be prudent to wait for that update if you have a low tolerance for risk. Especially considering the premium its shares trade at today in comparison to its peers.

Noni B Limited (ASX: NBL)

Another top retail share that I think is worth a closer look at is Noni B. It recently announced the acquisition of the Katies, Millers, Crossroads, Autograph, and Rivers brands from Specialty Fashion Group Ltd (ASX: SFH) for $31 million. Although these brands have been loss-making for their former owner, Noni B’s management team is confident that the brands are highly financially synergistic and will improve the broader market structure in which it operates. In light of this, I feel confident that FY 2019 will be another year of stellar growth for the retailer. Which I believe could make Noni B great value at approximately 20x trailing earnings.

Not keen on retail shares? Then check out Scott Phillips' latest top picks here.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia has recommended Amazon. 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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