2 non-food retail stocks to buy amid rising sales

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2 non-food retail stocks to buy amid rising sales

 2 non-food retail stocks to buy amid rising sales
Image source: muse studio, Shutterstock

Highlights

  • UK’s November retail sales rose by a better-than-expected reading of 1.4 per cent, compared to an increase of 0.8 per cent in October.
  • The higher reading was due to Black Friday and early Christmas shopping by UK shoppers.
  • The month’s reading was boosted by non-food store sales, which increased by 2 per cent in November 2021.

UK’s November retail sales rose by a better-than-expected reading of 1.4 per cent, compared to an increase of 0.8 per cent in October, according to the latest data from the Office for National Statistics (ONS).

The higher reading came as shoppers in the UK went for Black Friday and early Christmas shopping.

The month’s reading was boosted by non-food store sales, which increased by 2 per cent in November 2021. Moreover, UK’s November retail sales were higher by 4.7 per cent from the same month the year before, as per the ONS data.

Let us take a look at 2 AIM-listed non-food retail stocks and their investment prospects:

  1. Quiz PLC (LON: QUIZ)

Quiz PLC is a UK based clothing business.

The group’s revenue for the six months to 30 September stood at £36.0 million, up from £17.2 million.

Its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) during the period stood at £0.7 million, reversing from a loss of £3.3 million from the year before.

QUIZ share price and volume

Image source: Refinitiv

As seen in the above Refinitiv chart, Quiz’s shares were trading higher by 12 per cent at GBX 14.00, as of 17 December 12:10 hrs BST. At the same time, the FTSE AIM All-Share index, which it is a part of, was at 1,161.29, down by 0.51 per cent.

The group’s market cap was at £15.53 million, while its year-to-date return stood at 91.15 per cent, and its one-year return is at 78.14 as of 17 December.

  1. ASOS PLC (LON: ASC)

ASOS plc is a UK based online fashion and cosmetic retail company

The company’s FY 2021 revenues rose by 20 per cent, to £3,910.5 million, up from £3,263.5 million in the year before.

And its FY 2021 adjusted EBITDA increased by 23 per cent to £343.7 million, up from £279.4 million.

The group expects its FY 2022 sales growth to be between 10 per cent and 15 per cent. The group anticipates its H1 2022 revenue growth in the mid-single digits, due to a tougher comparable in the H1, in the UK region.

ASC share price and volume

Image source: Refinitiv

As seen in the above Refinitiv chart, Asos’ shares were trading at GBX 2,215.00, up by 4.98 per cent, as of 17 December 12:22 hrs BST. At the same time, the FTSE AIM UK 50 index, which it is a part of, was at 6,271.76, down by 0.41 per cent.

The group’s market cap was at £ 2,108.74 million, as of 17 December.

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