Broker Macquarie released a report on consumer data on Tuesday. It included insights into two of Australia's largest consumer discretionary companies: JB Hi Fi Ltd (ASX: JBH) and Harvey Norman Holdings Ltd (ASX: HVN).
Both companies operate in the consumer discretionary sector. This is influenced by changes in the economy, consumer confidence, and disposable income.
Unlike essential services like healthcare, consumers might be quick to cut out items like electronics or furniture in times of economic downturn.
This can lead to increased volatility in the sector.
Based on Macquarie's report, it seems economic conditions could be shifting in the favour of these two ASX 200 companies.
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JB Hi Fi Ltd (ASX: JBH)
JB Hi-Fi is one of Australia's most recognised electronics retailers. It operates over 340 stores in Australia and New Zealand.
It has been somewhat of an ASX darling this past year, with JB Hi-Fi shares rising 86.37%.
Broker Macquarie believes the company is well positioned to see further growth.
In Electronics, we see JBH as the key winner as its value proposition resonates with consumers in categories that continue to become less discretionary (i.e.mobile phones, computers).
The broker currently has an "overweight" label on the company and a price target of $111.00 on JB Hi-Fi shares.
This doesn't indicate share price growth in the short term. But the High Frequency Consumer Data from the broker shows overall spend per card is slightly positive, with pharmacy and electronics growth continuing.
Harvey Norman Holdings Ltd (ASX: HVN)
One of Australia's largest household and consumer goods retailers, Harvey Norman also owns a large retail property portfolio.
Its share price has already risen more than 15% in 2025.
Broker Macquarie also looks favourably on the company, noting the trajectory for furniture spending has improved.
The broker noted:
We have outperform recommendations on JBH and HVN which could benefit from strength in electronics, and the latter exposed to housing.
Positively, furniture sales have also started to improve following a softer 1Q25.
The broker has an "outperform" rating and $5.50 price target on the consumer discretionary company.
It is also an attractive option for dividend focussed investors according to Bell Potter. The broker is anticipating a yield of around 5%.
