10 retail stocks to explore as economy improves

Summary

• In Q1 of 2021, Big Lots’ net income was US$94.6 million or US$2.62 per diluted share. In the same period last year, its net income was US$49.3 million.
• Ulta Beauty’s net sales were US$1.9 billion, up 65.9% YoY, and net income was US$230.9 million or US$4.10 per diluted share in Q1 of 2021.
• Lululemon’s net revenue jumped 88% YoY to US$2.1 billion, and net revenue of company-owned stores rose 106% YoY to US$536.6 million in Q1.

Retail companies provide finished durable and non-durable goods to their customers. These companies sell groceries, books, toys, apparel, electronics, furniture, kitchenware, gardening supply, pharmacy, auto parts, among others.  

E-commerce retail has significantly transformed the industry in recent times. During the pandemic, retail e-commerce companies thrived while traditional retail companies suffered losses. 

We explore here 10 retail stocks in the market.

Big Lots, Inc (NYSE:BIG)

Big Lots runs 157 stores in 47 US states. Its e-commerce platforms include BOPIS, Instacart, and Big Lots Now.

Its stock traded at US$68.8 in the premarket session on June 14. The stock price increased by 64% YTD. Its market cap is around US$2.3 billion.

In Q1 of 2021, Big Lots’ net income was US$94.6 million or US$2.62 per diluted share. In the same period last year, the net income was US$49.3 million.

Its net sales surged 13% YoY to US$1626 million. Sales were US$1439 million In Q1 of 2020.

Also read: E-commerce Stocks To Watch This Year

Lululemon Athletica Inc. (NASDAQ:LULU)

Lululemon is a lifestyle and sports apparel company.

Its stock traded at US$338.89 at 8.19 am ET on June 14, up 0.17%. The stock price decreased by 4.91% YTD. Its market cap is around US$45.7 billion.

In Q1 of 2021, its net revenue jumped 88% YoY to US$2.1 billion, and the net revenue of company-owned stores saw a 106% growth YoY to US$536.6 million. Its gross profit increased by 109% YoY to US$700.3 million.

Also read: 10 Hot Penny Stocks To Explore In June

Source: Pixabay.

Ulta Beauty (NASDAQ:ULTA)

Ulta Beauty is a retailer of beauty products and runs 1,290 stores across 50 states. Its stock traded at US$339.50 at 8.24 am ET on June 14, up 0.31%. Its stock price increased by 20.18% YTD. Its market cap is around US$18.5 billion.

In Q1 of 2021, its net sales were US$1.9 billion, up 65.9% YoY, and net income was US$230.9 million or US$4.10 per diluted share. Gross profit rose from US$303.6 million to US$757.8 million.

Also read: Which Are The Top 10 Automakers Listed In US?

Floor & Decor (NYSE:FND)

It sells home improvement products such as lamination, tiles, stone flooring, etc. It runs 140 warehouse-cum-stores and two design studios.

Its stock traded at US$97.95 at 8.24 am ET on June 14, up 0.63%. Its stock price increased by 5.93% YTD. Its market cap is around US$10.2 billion.

In Q1 of 2021, its net sales jumped 41% YoY to US$782.5 million, and comparable-store sales increased by 31.1%.

The company’s operating income was up 105.6% YoY to US$95.9 million.

Also read: Costco Stock Declines As Company Flags Inflationary Pressures

Source: Pixabay.

Purple Innovation Inc. (NASDAQ:PRPL)

The company designs mattresses, frames, pillows, bedsheets, etc.

Its stock traded at US$28.86 in the premarket session on June 14. Its stock prices decreased by around 12% YTD. Its market cap is about US$1.9 billion.

Its net revenue rose 52.3% YoY to US$186.4 million in Q1 of 2021, operating income increased by 125.3% YoY to US$16.9 million, and net income rose from US$28 million to US$20.9 million.

Also read: Trending Retail Stocks: Bed Bath & Beyond, Etsy

Best Buy Co. (NYSE:BBY)

Best Buy Co is an electronics retailer. Its stock traded at US$114.54 at 9.04 am ET on June 14, up 0.06% from the previous closing price. The stock is 13.96% YTD. Its market cap is around US$28.6 billion.

In Q1 of 2021, its comparable sales increased from US$8,562 million to US$11,637 million.

Also read: 10 Hot Mid-Cap Stocks To Watch

RH (NYSE:RH)

RH is a home furnishing company and sells products through its galleries and e-commerce platforms. Its stock traded at US$684.495 at 9.16 am ET on June 14, up 0.29% from the previous closing price. The stock gained around 54% YTD.

Its market cap is around US$14.3 billion.

In Q1 of 2021, its total revenue increased by 78% YoY. It generated US$228 million adjusted EBITDA and US$136 free cash in Q1.

It had a debt of US$382 million at the end of the quarter.

Also read: 10 Semiconductor Stocks To Watch This Summer

Burlington Stores, Inc. (NYSE:BURL)

The company sells fashion products for men and women, footwear, toys, etc. It runs 784 stores in 47 US states. It also operates a store in Puerto Rico.

Its stock traded at US$310.30 at 9.35 am ET on June 14, up 0.96% from the previous close. It gained over 22% YTD. Its market cap is about US$20.8 billion.

In Q1 of 2021, its total sales surged 35% YoY to US$2191 million and net income by 120% YoY to US$171 million, or US$2.51 per diluted share.

Also read: Novan Inc. & Senseonic Inc: Two Trending Healthcare Stocks

Chico's FAS (NYSE:CHS)

Chico’s is another US fashion retailer founded and led by women. Its stock traded at US$5.66 at 9.47 am ET on June 14, up 1.57% from the previous closing price. The stock gained 236% YTD. Its market cap is US$704 million.

Its total sales increased by 38.4% in Q1 of 2021, which ended on May 2. Its gross margin improved by 32.7% YoY. Its Soma section sales went up by 65%.

Also read: What are the factors that influence global crude oil prices?

Boot Barn Holdings (NYSE:BOOT)

It is a leading lifestyle retailer. The company operates 275 stores in 36 states. 

Its stock traded at US$75.64 at 9.59 am ET on June 14, down 0.34% from the previous close. Its stock gained 80% YTD. Its market cap is around US$2.2 billion. In Q1 of 2021, its net sale rose to US$258.9 million, net income US$24.6 million or US$0.82 per diluted share YoY.