LOV, MYR: 2 ASX retail stocks to watch out for

Highlights:

• The S&P/ASX200 Consumer Discretionary index ended Wednesday, 10 May 2023, increasing by 0.22%.
• Lovisa Holdings Limited (ASX: LOV) revenue rose 44.8% to AU$315.5 million in 1H FY23 results.
• In 1H FY23, Myer Holdings Limited (ASX: MYR) total sales grew 24.2% to AU$1,885 million from AU$1,517.4 million in pcp.

The S&P/ASX200 Consumer Discretionary index ended Wednesday, 10 May 2023, increasing by 0.22%. As per the ABS, the Consumer Price Index for the March quarter of 2023 increased 1.4%. The CPI grew 7% across the twelve months period to the March quarter of 2023.

Retail stocks come under the consumer discretionary or consumer staples sector. In this article, we will be discussing 2 ASX retail stocks- LOV and MYR.

Lovisa Holdings Limited (ASX: LOV)

The fashion jewellery chain involved in its retail sale closed Wednesday, higher by 0.356% to AU$25.370.

In its 1H FY23 results ended 1 January this year, LOV’s revenue rose 44.8% to AU$315.5 million on pcp, demonstrating comparable store sales of 12.5% on pcp and growth in the store network. NPAT for the period was AU$47.7 million, an increase of 31.9% on pcp, with same-store sales rising by 12.5% on pcp and a further 86 new storeo worldwide. The company paid a 100% franked dividend of 38 cps on 20 April 2023.

Trading for the initial 7 weeks of the 2H FY23 witnessed comparable store sales for this period, increasing by 12.3% on fiscal year 2022. Total sales for these seven weeks of the second half were elevated by 24% on the same period in FY22. After the close of 2H FY23, the company opened their first two stores in the new franchise market Peru, with the store network presently at 746 comprising 31 net new stores inaugurated for the 2H FY23 until 22 February.

 Myer Holdings Limited (ASX: MYR)

The operator of 57 department stores throughout Australia ended Wednesday decreasing by 1.234% to AU$0.800.

In 1H FY23 results ended 28 January, MYR total sales grew 24.2% to AU$1,885 million relative to AU$1,517.4 million in pcp, which was propelled by customers’ going back to physical retail. However, group online sales fell by 9.8% to AU$382.3 million as consumers went back to physical stores. NPAT grew more than 101% to AU$65 million, the highest since 1H FY14. A 100% franked dividend of 4 cps and a special distribution of 4 cps was declared for 1H FY23, at a tax rate of 30%, to be paid on 11 May 2023.

MYER one continues to underpin its growth, hitting a 73.5% tag rate across all transactions. Their Customer First Plan has been, and continues to be, the right Plan and has underpinned their growth and momentum in 1H FY23.

Active members rose to 4.1 million in the last twelve months, while new member acquisition rose by 36.1%. Also, during the eight weeks following Christmas, department store sales were up by 16.1% on pcp.