MENU

3 household name small-cap retail shares going great guns

You might not have shares in these companies, yet, but chances are you’ve heard of them.

These household name small-cap retail stocks are all worth keeping an eye on right now.

Here’s why.

Nick Scali Limited (ASX: NCK)

It’s highly likely if you’ve bought a new lounge suite recently you’ve flicked through a few Nick Scali brochures in your search.

According to an article in The Australian, beyond FY18 Nick Scali aims to grow its network by more than 40% from 53 stores to 75 stores with store rollouts underpinning its sales growth and property market buoyancy providing a favourable backdrop.

With a market cap of $534 million, Nick Scali is still in small-cap territory well and truly, but its Macquarie conference presentation in May highlighted sales were up 8.1% for the half year, with an NPAT increase of 15% and operating expenses down.

Nick Scali named an increased investment in marketing as helping it along, with its continued ability to derive revenue growth from existing infrastructure behind its ability to decrease spending.

While the health of consumer discretionary spending will always impact a company like Nick Scali, its household name status definitely helps it along in tough times.

One to watch.

Noni B Limited (ASX: NBL)

With a modest $296 million market cap, women’s apparel and accessories retailer Noni B Limited is a small cap stock – but some think it’s one with a big future.

Big name broker Wilsons last month named Noni B as a buy, with a $4.74 price target on the stock which is sitting down 0.3% to $3.07 at the time of writing.

Wilsons was attracted to Noni B’s recent acquisition of 5 brands from Speciality Fashion Group Ltd. (ASX: SFH), namely Millers, Katies, Crossroads, Rivers and Autograph – all of which add to Noni B’s “household name” status.

Noni B will always be open to discounting competition from peers, and it is no secret that the women’s’ fashion market can ebb and flow, but with a forecast 1404 stores and turnover of $892 million in FY19, things look bright for Noni B.

Kathmandu Holdings Ltd (ASX: KMD)

Travel and adventure clothing and equipment retailer Kathmandu Holdings reported a strong market update in late June with a 13.8% increase in same-store sales and a full-year net profit forecast of between $48 million and $52 million – a jump of about 30%,

Brokers like Macquarie upped its EPS forecast after the results were reported and increased its share price target to $2.98.

Kathmandu shares were down slightly to $2.65 at the time of writing but hit a post-update 52-week high of $2.74 on June 28.

Kathmandu has a solid global expansion strategy on the cards, but its expansion into the US will likely be done slowly and steadily after a failed expansion into the UK market back in 2015.

A retailer to keep an eye on.

From gung-ho small caps to the top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!