Next, JD Sports and B&M: 3 FTSE 100 retail stocks you can hold for long

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 Next, JD Sports and B&M: 3 FTSE 100 retail stocks you can hold for long
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Highlights 

  • UK’s January retail sector sales rose by 11.9 per cent, compared to a drop of 1.3 per cent in January 2021
  • Total non-food retail sales in January increased by 11.1 per cent on a like-for-like basis for the 3 months to January.

The UK’s retail sales rose in January by 11.9 per cent, compared to a drop of 1.3 per cent in January 2021, according to the latest figures from the British Retail Consortium (BRC) and KPMG Retail Sales Monitor. This rise was attributed to a strong New Year’s trading period, despite the persisting inflationary pressure.

The January rise was also higher than the annual average growth rate of 10.9 per cent and 3-month average growth rate of about 6 per cent.  Total retail sales in January 2022 rose by 7.5 per cent on a like-for-like basis compared to 2 years prior in January 2020.

Total food retail sales dropped by 0.1 per cent for the 3 months to January 2022, while the total non-food retail sales in January increased by 11.1 per cent on a like-for-like basis for the 3 months to January.

Here are 3 FTSE 100 index listed non-food retail stocks, which one could explore in order to better capitalise on the current scenario:

  1. Next PLC (LON: NXT)

Next is a UK-based multinational retail major. The company is set to release its full-year results (for the period ending in January 2022) next month, on 24 March.

According to its 6 January 2022 trading statement, the retailer’s FY 2022/23 full year full price sales are expected to be higher by 7 per cent (compared to FY 2021/22) to reach around £4.6 billion.

It also forecasts its FY 2022/23 group profit before tax is estimated to rise by 4.6 per cent, from the year before, to reach around £860 million.

NXT 6-month share price and volume

Image source: Refinitv

The company’s shares closed at GBX 7,194.00, up by 52.00 points or 0.73 per cent on 7 February. Meanwhile, the FTSE 100 index, which it is a part of, ended at GBX 7,573.47, up by 57.07 points or 0.76 per cent.

Next’s market cap was at £9,543.65 million as of Monday.

  1. JD Sports Fashion PLC (LON: JD)

JD is a sports and fashion-focused major retailer in the UK. The company is expected to report its full-year results (for the period ending on 29 January 2022), on 12 April.

In its latest trading update, the company forecasted its headline profit before tax (for the full year to 28 January 2023) to remain around the same as of the current year. This outlook is still above market expectations.

Moreover, JD anticipates its FY 2023 profit phasing to once again return to the company’s historic norms, wherein about 35 to 40 per cent of full-year profits are typically generated in H1 of that year.

 JD 6-month share price and volume

Image source: Refinitv

The company’s shares closed at GBX 181.40, lower by 0.60 or 0.33 per cent on 7 February.

The company’s market cap was at £9,356.86 million, and it has given its shareholders an annual return of 6.19 per cent as of Monday.

  1. B & M European Value Retail S.A. (LON: BME)

B & M European Value Retail is a UK-based variety retail company.

The retailer’s Q3 2022 revenue growth stood at 0.1 per cent, on a year-on-year and constant currency basis. The company expects its FY 2022 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) (on a pre-IFRS16 basis) to be between £605 million and £625 million.

This estimate is over the analyst consensus estimate of around £578 million.

BME 6-month share price and volume

Image source: Refinitv

The company’s shares closed at GBX 542.20, down by 13.00 points or 2.34 per cent on 7 February. The company’s market cap was at £5,428.65 million as of Monday.

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