The Breville Group Ltd (ASX: BRG) share price closed 18.01% higher at $14.09 per share on Thursday after a strong earnings result driven by its international expansion.
The company's first-half revenue rose 15.4% on the prior corresponding period to $440 million with the company's expansion into Germany and Australia proving to be a resounding success. Management intends to continue its European expansion with its Sage brand into Belgium, the Netherlands, Luxembourg and Switzerland in 2H19 and Spain in 1H20.
North America continues to pay dividends for the company with strong beverage and juicing product sales in the USA underpinning earnings.
Net profit for the group was up 19.7% to $43.5 million which saw the company increase its interim dividend by 2 cents per share (cps) on 1H18 levels to 18.5 cps, franked to 60%.
The company has ridden a 2018 health craze to be riding high in an otherwise ailing retail sector facing significant headwinds. The Aussie appliance maker still managed to grow revenue by 7.6% in its Australian and New Zealand segment despite recent Reserve Bank of Australia (RBA) data suggesting a miss on estimates in the sector.
Have I missed the boat on Breville?
Given today's 18% share price increase, and the fact that the $14.09 per share representing a record high for the stock, I'm inclined to say it's a bit late to jump on board the Breville bandwagon. While the stock could see further expansion globally and particularly in Europe in 2H19, I think ongoing retail headwinds might catch up to the company within the next 6-12 months.
For those looking for retail exposure, some of the big names including Woolworths Group Ltd (ASX: WOW) or Coles Group Ltd (ASX: COL) could offer some capital stability in a turbulent market.
