Investors commonly look to buy ASX All Ords consumer discretionary stocks when interest rate cuts are projected.
This is because lower borrowing costs mean investors have more to spend on discretionary items.
However, not all Australians have a mortgage. Rather, many Australians either rent or own their own home. Therefore, their spending is less affected by rate cuts or increases.
Over the past few years, the average age of a first-home buyer in Australia has been increasing. Due to rising property prices, the average Australian home buyer is now 36 years old, according to Broker News.
Accordingly, ASX All Ords consumer discretionary stocks targeting younger markets are unlikely to be materially affected by interest rate movements.
Today, the Reserve Bank of Australia (RBA) is widely expected to leave the official cash rate on hold. According to The ABC, there is an 8% chance of a rate cut. However, this is not set in stone. As experienced earlier in the year, the RBA can surprise the market.
If you're looking to add a consumer discretionary stock to your portfolio that isn't sensitive to the RBA's decision today, here are two ASX All Ords consumer discretionary stocks to consider. Both have excellent track records and appealing outlooks.
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Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a fast fashion jewellery retailer. Its target market is 15 to 25-year-old girls, who are far less likely to have a mortgage than the average Australian population.
While the company has expanded internationally over the past few years, Australian and New Zealand markets still make up around 25% of Lovisa's total revenue.
Lovisa shares have soared 382% over the past 5 years, as the company executes on its growth strategy and continues to open new stores.
In its FY25 results, management also revealed that the company had increased sales by 28% in the first eight weeks of FY26.
Macquarie Group Ltd (ASX: MQG) has a price target of $40.90 on Lovisa shares. Given that shares closed at $37.57 yesterday, this suggests around 10% upside from here, including dividends and capital gains.
Lovisa currently offers a dividend yield of 1.43%.
Universal Store Holdings Ltd (ASX: UNI)
Universal Store is another ASX All Ords retail stock that appeals to the youth market.
The company owns a portfolio of premium youth fashion brands and wholesale businesses. Its main businesses are Universal Store (trading under the Universal Store and Perfect Stranger brands) and CTC (trading as THRILLS and Worship brands).
The company currently has 112 physical stores in Australia. It also has aspirations to launch in New Zealand.
Macquarie recently named Universal Store its top ASX small-cap consumer discretionary pick.
The broker said it had demonstrated notable growth, was trading at a discount to its peers, was supported by favourable macro trends, and had a strategic expansion plan.
Macquarie also credited its ability to stay 'on trend' with a young customer base, which it suggested ranges from 15 to 25 years old.
Those who have held Universal Store shares for the past 5 years have doubled their money (before dividends).
Universal Store also offers an attractive dividend yield of 3.84%, making it also appealing to passive-income-oriented investors.
Macquarie's price target is $10.20. This suggests around 20% upside from here over the next 12 months, including dividends and capital gains.
