Top five mid-cap retail stocks with more than 100% YTD gain

Highlights

• Apparel, cosmetics, and home furnishing company Dillard's, Inc. (NYSE: DDS) stock gained 222% YTD. The stock closed at US$202.54 on Sep 16.
• Diamond jewelry retailer Signet Jewelers Limited (NYSE: SIG) runs 2,837 stores and kiosks globally. Its stock raked in 201% return YTD.
• Footwear maker Crocs, Inc. (NASDAQ: CROX) to become a net-zero firm by 2030. It launched the Croslite brand of shoes, made from bio-based material, this week.

The retail industry includes companies that provide durable and non-durable products and consumer services. The products include apparel, sporting goods, equipment, electronics, furniture, etc. Retail stocks have performed well this year compared to the previous year.

The S&P 500 Retail Select Index has given a 46.89% return year-to-date. Here we discuss five mid-cap stocks that generated more than 100% return this year.

Dillard's, Inc. (NYSE: DDS)

It is an apparel, cosmetics, and home furnishing retailer founded in 1938 and headquartered in Little Rock, Arkansas. The stock gained 222% YTD, and it closed at US$202.54 on Sep 16.

The company had to temporarily close all its stores in the first half of 2020. The stores were reopened from June last year.

Its retail sales increased by 72% in the July quarter of 2021 to US$1.57 billion. The net income was US$185.66 million against a net loss of US$(8.57) million in Q2 of 2020.

The company has 249 Dillard’s stores, and 31 clearance centers, with a presence in 29 states. It also has an online store. Dillard’s market cap is US$4 billion, and the P/E ratio is 9.75. Its dividend yield is 0.3%, with an annualized dividend of US$0.80.

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Signet Jewelers Limited (NYSE: SIG)

It is a diamond jewelry retailer that offers wedding collections, fashion, watches, and others.

As of July 31, 2021, the company operated 2,837 stores and kiosks. Of which, 2,392 locations were in the US, 94 in Canada, and 351 stores in the UK, Ireland, and the Channel Islands.

The stock raked in 201% return YTD. It closed at US$81.8 on Sep 16.

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The Hamilton, Bermuda-based company reported July quarter (Q2) of 2021 sales of US$1.8 billion compared to US$888 million in Q2 the previous year. The net income per share diluted was US$3.60 against a net loss of US$(1.73) per share diluted.

Signet was founded in 1949. It has a market cap of US$4.37 billion and annualized dividend of US$0.72. Its dividend yield is 0.92%, and the P/E ratio is 8.27.

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Crocs, Inc. (NASDAQ: CROX)

It is a designer, manufacturer, marketer, and distributor of footwear. The stock gained 152% YTD, and it closed at US$157.82 on Sep 16.

The Niwot, Colorado-headquartered company was founded in 2002. The company plans to go net-zero emissions by 2030. On Sep 14, CROX introduced a biomaterial-based footwear Croslite to reduce carbon footprint.

Crocs’ revenue for the July quarter of 2021 was US$640.7 million, up 93% from the previous year’s Q2. The net income per share diluted was US$4.93 against US$0.83 per share diluted in Q2 2020. CROX has a market capitalization of US$9.6 billion and a P/E ratio of 15.38.

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The Beauty Health Company (NASDAQ: SKIN)

The Long Beach, California-based company offers innovative beauty health products. Its flagship brand is HydraFacial. The company has a worldwide presence; its products are sold in over 87 countries.

The stock rose 130% YTD, and it closed at US$26.00 on Sep 16, 2021.

The company, founded in 1997, earned US$66.5 million in sales, up 371.2% YoY in the June quarter of 2021. The net loss was US$139.4 million against US$10.4 million in Q2, 2020.

It has a market cap of US$3.5 billion and a forward P/E one year of 173.33.

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Academy Sports and Outdoors, Inc. (NASDAQ: ASO)

It is into retailing sports goods and outdoor recreational products like sports equipment, outdoor clothing, sunglasses, electronic items, dog supplies, etc. The company is headquartered in Katy, Texas. The stock gained 122% YTD. The stock closed at US$46.06 on Sep 16.

For the July quarter of 2021, the net sales were US$1.79 billion compared to US$1.6 billion for the same quarter a year ago. The earning per share was US$1.99 compared to US$2.25 per share diluted in the corresponding quarter of the previous year.

ASO was founded in 1938. Its market capitalization is US$4.2 billion, and the P/E ratio is 8.14.

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Bottomline

The retail sector has been making a sustained recovery from the covid disruptions. Sales were up for the second consecutive month in August. Analysts expect the growth momentum to continue in the coming quarters boosted by people’s savings and growing demand. However, investors must evaluate the companies carefully before investing in stocks.