Retail shares to look out for

Highlights

  • The growth in online shopping has benefited many retailers in Australia.
  • Few retail companies have record full year results outperforming guidance.
  • CTT and CXX delivered 54%, 21% and 20% return over 1 month followed by MOZ and KMD at 20% and 14%.

The sudden pandemic brought several changes in the Australian retail sectors -- a key contributor to the Australia’s growth story. Many retailers achieved healthy results during FY21.

As the country moved towards new normal, many retailers witnessed surge in online shopping. This article will walk you through top retail stocks to look out for.

Kalkine Research Source:ASX 

Cettire Limited (ASX:CTT)

The ASX listed worth AU$1.40 billion Cettire Limited, is a global online luxury goods retailer.

Representative Image Source: © Jirsak | Megapixl.com , image description – online shopping

Cettire has delivered an exceptional growth, outperforming the FY21 Prospectus forecasts and guidance. According to its FY21 results:

  • The company reported gross revenue of AU$124.5 million, up 384% on a constant currency basis.
  • Cettire maintained a robust balance sheet with zero debt and cash at AU$47.1 million.
  • The company’s adjusted earnings before interests, taxes, depreciation, and amortisation (EBITDA) stood at AU$2.1 million.
  • Operating cash flow significantly increased by 131% to AU$12.7 million.

On 24 September, CTT shares were trading 2.710% higher at AU$3.790 at 10:34 AM AEST.

City Chic Collective Limited (ASX:CCX)

City Chic Collective is an ASX-listed multi-channel retailer offering a range of globally recognised plus size brands for women.

Representative Image Source: © Jirsak | Megapixl.com, image description – plus size women clothes

Despite the market uncertainty due to COVID-19 pandemic, the company had a very productive year. According to its FY21:

  • Sales revenue grew by 32.9% to AU$258.5 million, supported by continued operations and the net profit after tax stood at AU$21.6 million, up 135.3% from FY2020.
  • The Group’s underlying EBITDA also increased by 60% from FY2020, to AU$42.4 million.
  • City Chic ended the year with net cash of AU$71.5 million and the normalised operating cash flow stood at AU$24.2 million.

On 24 September, City Chic shares were trading 0.538% lower at AU$6.595 at 10:40 Am AEST.

RELATED READ - 5 e-Commerce stocks to look at in September 2021

Mosaic Brands Limited (ASX:MOZ)

With a market worth of AU$53.16 million, Mosaic Brands Limited is an ASX listed speciality fashion retailer group in Australia.

According to its FY21 annual report:

  • The company’s online sales grew by 19% to AU$111 million.
  • Mosaic achieved a comparable store growth of AU$23.5 million, up 27.9% from the prior corresponding year.
  • Company’s EBITDA stood at AU$48 million and the cash balance stood at AU$50 million for the year ended on 27 June 2021.

On 24 September, Mosaic shares were trading at AU$0.550, unchanged from the previous close.

Kathmandu Holdings Limited (ASX:KMD)

The ASX listed AU$1.05 billion – Kathmandu Holdings Limited, is a global retailer of clothing and travel equipment in Australia.

The global retailer maintained a strong balance sheet with resilient cash flows for FY2021. According to its FY21 financial results:

  • The company maintained a robust balance sheet with AU$37 million net cash along with adjusted operating cash flow at AU$93.3 million.
  • Group’s online sales grew by 21.9% to AU$90.5 million.
  • The underlying EBITDA grew by 35.9% to AU$113.3 million.

On 24 September, KMD shares were trading 1.011% lower at AU$1.470 at 12:17 PM AEST.

Adore Beauty Group Limited (ASX:ABY)

Adore Beauty is an ASX-listed online cosmetics retailer with a market worth of AU$451.79 million.

Representative Image Source: © Jirsak | Megapixl.com, image description – cosmetic products

Adore Beauty achieved record full year results outperforming guidance. According to its latest FY21 results released in late August –

  • The Group’s revenue stood at AU$179.3 million, up 48% from prior corresponding period (PCP).
  • Company’s gross profit margin increased by 33.1% to 12 percentage points on PCP.
  • The Group’s EBITDA also increased by 53% to AU$7.6 million.

On 24 September, Adore shares were trading 3.541% higher at AU$4.970 at 12:34 PM AEST.

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