These ASX clothing retailers' share prices are storming to record highs

A surprisingly strong Christmas retail period has boosted the share prices of these ASX retail companies.

| More on:
A happy shopper with lots of bright shopping bags, indicating a positive surge for ASX retail share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With COVID-19 vaccine rollouts now advancing in many nations across the world, there is a renewed sense of optimism about the end of the pandemic and a potential near term economic recovery.

Although the vaccine distribution is yet to commence here in Australia, our success in dealing with localised outbreaks has meant that we have already been able to safely open up our economy and return to some degree of normal life.

We can see this in sectors such as the retail industry which bounced back over the Christmas period. The Australian Bureau of Statistics estimated that seasonally adjusted turnover increased by 9.4% year-on-year in December 2020.

This unexpected jump in retail activity has helped buoy the share prices of many local retailers. Here are four ASX retail shares that have seen their share prices soar to new highs recently.

Premier Investments Limited (ASX: PMV)

With a market cap approaching $3.7 billion, Premier Investments is the largest and most established retail company on this list. It owns the Just Group, which includes the Just Jeans, Peter Alexander, and Jay Jays brands. Premier Investments also has a 28% stake in household electrical appliances manufacturer Breville Group Limited (ASX:BRG).

In a trading update released to the market earlier this month, Premier Investments stated that it expected first half FY21 earnings before interest and tax expenses (EBIT) to be in the range of $221 million to $233 million, an increase of between 75% and 85% on first half FY20.

Its share price briefly jumped to a new all time high of $26.70 on the back of that update. While it has pulled back to $23.10 as at the time of writing, it is still up a touch over 25% in the last twelve months.

Globe International Limited (ASX: GLB)

Globe manufactures and distributes a range of street fashion, skating equipment, outdoor clothing, and workwear. Among its proprietary brands is skate and apparel brand Globe, as well as surfing apparel brand Salty Crew. It also owns the Australian distribution rights for well known American streetwear brand, Stüssy.

Globe International released a trading update on 18 January. It reported preliminary sales numbers of approximately $125 million for the first half of FY21, an uplift of 60% versus first half FY20. More importantly, EBIT was also expected to come in at more than $20 million – an increase of over 370%.

The Globe International share price skyrocketed on the news. In just this month alone it has surged almost 70% higher. Over the last twelve months it is up close to 190%.

Accent Group Limited (ASX: AX1)

Accent Group is the largest footwear retailer in Australia. It operates over 400 stores across Australia and New Zealand and has exclusive distribution rights for a number of well known international brands including Dr. Martens, Skechers, and Timberland.

Accent Group also released a trading update earlier this month in which it announced that stronger than expected sales in November and December had resulted in a jump in first half FY21 earnings before interest, tax, depreciation, and amortisation (EDITDA). It now expects EBITDA in the range of $95 million to $98 million, an increase of up to 45% versus first half FY20.

The Accent Group share price has surged over 40% higher in the last twelve months.

City Chic Collective Limited (ASX: CCX)

Last on the list is plus sized women's clothing retailer, City Chic. Despite store closures causing a dip in City Chic's sales across Australia and New Zealand in FY20, the company still managed to increase Group revenues due to its growing presence in the Northern Hemisphere.

It acquired the ecommerce assets of American brand the Avenue in October 2019, which boosted its market penetration in the US and also helped to double its online sales for the year. In December, City Chic also announced it had acquired the ecommerce and wholesale assets of UK-based women's plus size brand, Evans.

This willingness to expand into new markets has delivered big gains in the City Chic share price.

It recently set a new record high price of $4.24, and is up almost 50% over the last twelve months.

Motley Fool contributor Rhys Brock 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 has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Retail Shares

Why I just sold half my shares in this ASX 300 stock even though I still love it!

I’m still a big fan of this business.

Read more »

Two fashionable asx investors dancing among confetti.
Retail Shares

2 'very high-quality' ASX retail shares with significant inside ownership

A fund manager has named two appealing stocks to own.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Close-up Of Empty Shopping Cart Near Person's Hand Using Calculator Over White Desk
Retail Shares

Better buy: Coles or Woolworths stock?

Which stock should go in the shopping basket?

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Retail Shares

Why did Super Retail shares drop after going ex-dividend?

This is the story behind the decline.

Read more »

Happy couple doing online shopping.
Opinions

Is it too late to buy after the Kogan share price rocketed 90% in a year?

Is this online retailer still an investment opportunity?

Read more »

Two people comparing and analysing material.
Retail Shares

Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock

Which of these two retail heavyweights would be a better buy?

Read more »

A man eases back onto his sofa, happy with the relaxed vibe from his furniture.
Share Gainers

If you'd put $30,000 in this ASX retail stock 11 months ago, you'd have $116,000 now

When battered stocks make a comeback, it happens very quickly. Here's a prime example.

Read more »