Why these three Retail stocks are worth your attention in 2021

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Why these three Retail stocks are worth your attention in 2021

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 Why these three Retail stocks are worth your attention in 2021

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The global retail industry went through a transformation amid the COVID-19 pandemic. Notably, many retailers were facing pressure even before the onset of the pandemic, due to a shift towards e-commerce. However, as the pandemic unleashed devastation, it forced the brick-and-mortar shops to shut doors, and retailers became solely dependent on online sales. Many couldn't sustain the pressure and filed for bankruptcies. On the contrary, many others took advantage of the situation and made massive changes in their operations, shifting towards e-commerce delivery. 

Let us glance at three such retail stocks from the US that made waves in face of the crisis.

BJs Wholesale Club Holdings Inc. (NYSE:BJ)

In November 2020, BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) released its financial results for the third quarter (the period ended 31 October 2020). BJ's announced a remarkable thirteen-week performance, accomplishing robust growth for the company.

The retail giant highlighted its market share gains and also informed investors of having a profitable third quarter. Its comparable club sales, which exclude the gasoline sales, grew by 18.5%. Remarkably, the firm clocked an exponential digital sales growth of ~200%.

Image Source: ©Kalkine Group 2020

Income from continuing operations grew by a whopping 122.6% YOY to hit $122.9 million. BJ's also reported its adjusted EBITDA at $242.2 million, a 57.1% YOY growth for the Q3 FY2020. Notably, the earnings per diluted share of $0.88 showcased a 120.0% YOY growth. Its adjusted earnings per diluted share of $0.92, demonstrated a growth of 124.4% YOY.

Lee Delaney, BJ's Wholesale Club’s President and Chief Executive Officer, said that the company was confident of thriving amid the crisis. The company witnessed a sharp shift in consumer behaviour during the pandemic. BJ's also increased its digital capabilities and finetuned other aspects of its business which boosted the company’s growth in 2020. 

Five Below, Inc. (NASDAQ:FIVE)

Five Below, Inc. (NASDAQ:FIVE) informed investors in January 2020 that it had witnessed the most vigorous holiday comparable sales growth since 2011. The company released its net sales results for the holiday period from November 1, 2020, through January 2, 2021.

For the quarter-to-date period, Five Below clocked net sales of $722.3 million, a 21.1% increase from $596.6 million in the holiday period of November 3, 2019, through January 4, 2020.

Five Below's President and CEO, Joel Anderson expressed his delight over the company’s holiday period performance, that had superseded expectations. He added that the growth demonstrated the company's brand and product value for its customers. Its products and Wow gifts helped increase retailers’ offerings that made an impact on the customers during the holiday period.

Image Source: ©Kalkine Group 2020

For its full-year fiscal 2020 guidance, the company said its sales results align with the expectations and Five Below intends to continue with the growth in 2021. It estimates to clock net sales between $1.939 billion to $1.944 billion, that is, a rise of 5.0% to 5.2%. 

Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) 

In December 2020, Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) released financial results for the third quarter ended on October 31, 2020. Ollie's informed investors that the company was proud of its team for delivering an exceptional quarter during COVID-19 pandemic. Like other retailers, Ollie's also faced unprecedented times in 2020; however, it responded well to the market opportunities.

The company saw a robust comparable store sales growth in the third quarter. Ollie's reported growth of 26.7% in its total net sales, reaching $414.4 million, whereas its comparable-store sales grew 15.3%. It opened 19 new stores during the third quarter, including the relocation of one store. Ollie's ended the quarter with a total of 385 stores in 25 states, which is an 11.6% YOY rise in store count. 

 

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