The ASX 300 may be pushing higher today, but this pales in comparison to some of the gains being made in the retail sector.
For example, the three ASX 300 retail shares listed below are all smashing the market.
Here's how they are currently performing:
- The Cettire Ltd (ASX: CTT) share price is up 3% to $3.50.
- The com Ltd (ASX: KGN) share price is up 9% to $5.23.
- The Temple & Webster Group Ltd (ASX: TPW) share price is up 15% to $7.43.
Why are these ASX 300 retail shares rising?
The catalyst for these strong gains appears to have been a lower-than-expected inflation reading and the release of a trading update out of Temple & Webster.
In respect to the former, with inflation coming in lower than expected, this could reduce the need for further rate hikes, which would be good news for consumer spending.
As for the latter, as we covered here earlier, that update revealed that trading during the Black Friday/Cyber Monday sales events this year was exceptionally strong.
Temple & Webster's CEO, Mark Coulter, commented:
The Black Friday-Cyber Monday trading period continues to grow in importance as customers bring their Christmas shopping forward. This year the 4-day period delivered $17.4m in sales, up 101% on last year, and included multiple record days.
This appears to demonstrate that consumer spending online has been strong during this important part of the year for retailers.
Though, it is worth remembering that Cettire and Kogan operate in very different areas of the market to Temple & Webster. So, just because Temple & Webster, which sells furniture and homewares online, has doubled its sales, doesn't mean that Kogan or online luxury products retailer Cettire have also performed strongly.
In fact, with respect to Cettire, a number of luxury retailers have reported softer-than-expected sales recently. Whereas for Kogan, not only is it battling Amazon in Australia, but it also now has Chinese budget retailer Temu winning significant market share.
We'll find out in February how they performed over the holiday period.