Consumer discretionary
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Discretionary retail thrives as we spend up big at home
Dominic Rose
August 7, 2020
For more evidence that discretionary retail is absolutely booming right now, particularly the furniture and homewares category, look no further than Nick Scali’s (ASX:NCK) strong FY20 result and near-term outlook. NCK’s result follows hot on the heels of strong updates by key homewares peers, Temple & Webster (ASX:TPW) and Beacon Lighting (ASX:BLX), and reinforces our conviction in Adairs (ASX:ADH) heading into results season. continue…
by Dominic Rose Posted in Companies, Consumer discretionary, Stocks We Like.
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Consumption data signal trouble ahead for many businesses
Stuart Jackson
July 29, 2020
JobKeeper has been incredibly important in supporting consumer spending in Australia. But recent data show that spending could be plateauing – even before JobKeeper is wound back. This could signal even worse times ahead for many businesses. continue…
by Stuart Jackson Posted in Consumer discretionary, Market commentary.
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Why we’re strengthening our tilt to e-retailers
Roger Montgomery
July 22, 2020
Our small cap fund’s investments in selected e-commerce enabled retailers has served us well during the COVID-19 period. With total consumption likely to decline over the next year or so, we think these businesses should continue to outperform Brick & Mortar retailers. continue…
by Roger Montgomery Posted in Companies, Consumer discretionary.
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New data confirms the meteoric rise of online shopping
Stuart Jackson
June 10, 2020
The government-imposed COVID-19 lockdown accelerated a number of social trends. One of those was our increasing preference for online shopping. Recent data shows that even though the lockdown pushed total retail sales off a cliff in April, online sales shot up. And one retailer – Kogan – stood out from the pack. continue…
by Stuart Jackson Posted in Companies, Consumer discretionary.
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The retailers to watch as the economy opens up
Dominic Rose
May 19, 2020
In just a few short months, the COVID-19 pandemic and associated lockdown have triggered seismic shifts across the retail landscape. Some changes are likely to be temporary; others may accelerate previous structural trends. As we emerge from hibernation, I thought I’d try to identify the businesses that should prove to be better investments in the years ahead. continue…
by Dominic Rose Posted in Companies, Consumer discretionary, Stocks We Like.
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Three small cap retailers to watch
Dominic Rose
March 30, 2020
Small cap discretionary retailers have been among the biggest losers in this market rout. But, sifting through the wreckage, we’ve found some great businesses that could bounce strongly if the worst-case scenario being priced in by the market turns out better than expected. continue…
by Dominic Rose Posted in Companies, Consumer discretionary, Stocks We Like.
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The retailer capitalising on the e-commerce trend
Dominic Rose
February 25, 2020
A standout amongst small caps this earnings season to date was specialty apparel retailer, City Chic Collective (ASX:CCX), which reported 21 per cent growth in 1H20 underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) to $19 million, well ahead of market expectations and triggering solid upgrades to consensus forecasts. continue…
by Dominic Rose Posted in Companies, Consumer discretionary, Stocks We Like.
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Retail Sales, the saddest since the recession
Roger Montgomery
December 6, 2019
The Australian Bureau of Statistics (ABS) has reported the first annual decline in retail sales volumes since the recession of 1990-91. This comes just a day after Australia’s national accounts revealed household consumption is the weakest it has been since the Global Financial Crisis. continue…
by Roger Montgomery Posted in Consumer discretionary.
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Rising financial distress signals tough times ahead for retailers
Roger Montgomery
November 22, 2019
Insolvency practitioners – who turn around failing businesses, or wind them up – are the canary in the economic coal mine. Right now they’re expanding and hiring more staff, which suggests they’re preparing for challenging economic times ahead. And that spells bad news for our retailers. continue…
by Roger Montgomery Posted in Companies, Consumer discretionary.
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Will Christmas shopping rescue Australia’s retailers?
Dominic Rose
November 13, 2019
You can’t underestimate the importance of retail spending. When nations open their wallets, it stimulates the economy. Investors have been bracing for a cheerier Christmas, however should we be worried about recent data which has shown a marked slowdown in momentum? continue…
by Dominic Rose Posted in Companies, Consumer discretionary.
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- POSTED IN Companies, Consumer discretionary