Earlier today Premier Investments Limited (ASX: PMV) released its full year results. While I’m a big fan of the company and a couple of its brands in particular, I didn’t see enough in the results to make me want to pick up shares at their current level. Because of this, I think the three retail shares listed below remain far better options for investors. Here’s why: Adairs Ltd (ASX: ADH) Adairs is a home furnishings retailer which really caught the eye during earnings season. The company bounced back with a bang from a tough FY 2017 by growing its…
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While I’m a big fan of the company and a couple of its brands in particular, I didn’t see enough in the results to make me want to pick up shares at their current level.
Because of this, I think the three retail shares listed below remain far better options for investors. Here’s why:
Adairs Ltd (ASX: ADH)
Adairs is a home furnishings retailer which really caught the eye during earnings season. The company bounced back with a bang from a tough FY 2017 by growing its profits by 45.4% to $30.6 million. This strong performance was driven by the success of its focus on large format homemaker stores and impressive online sales growth. The latter grew by 75% on the prior year to $42 million. Pleasingly, management advised that it has had a solid start to FY 2019 and achieved like for like sales growth of 5.4% year-to-date.
Noni B Limited (ASX: NBL)
Noni B is a women’s fashion retailer which could be well worth a closer look despite the fact its shares have been on a tear over the last 12 months. Investors have been fighting to get hold of shares after another strong performance in FY 2018 and a promising acquisition of a number of brands from Specialty Fashion Group Ltd (ASX: SFH). While these brands have struggled under Specialty Fashion’s leadership, Noni B’s management has a strong track record of turning around failing retail brands and making them highly profitable. I’m optimistic that it will accomplish this with these brands, setting it up for strong earnings growth over the next couple of years at least.
Super Retail Group Ltd (ASX: SUL)
Another strong performer in FY 2018 was this retail conglomerate which is responsible for brands including Super Cheap Auto, Rebel Sports, and Macpac. It posted a 26% lift in net profit after tax to $128.3 million during the year thanks to positive performances from the majority of its portfolio. Pleasingly, the company looks set to build on this in FY 2019 following a strong start to the year. Management advised that each of its businesses had achieved positive like for like sales growth during the first few weeks of the year.
Finally, here's another share which I believe is well-positioned for explosive growth over the coming years. I would class it as a strong buy at current levels.
Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.
This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of Super Retail Group Limited. 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.