Day: January 11, 2022

There were the 5 best performing ASX 200 retail shares of 2021

Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.

The S&P/ASX 200 Index (ASX: XJO) had a roaring 2021 – it gained 13% – but many of its retail constituents performed better.

The index doesn’t include many retailers, but some of those that earned their way into its ranks proved that they belong there last year.

Let’s take a look at which retailers were the top performing ASX 200 shares in their class in 2021.

Here are the 5 top performing ASX 200 retail shares of 2021

Premier Investments Limited (ASX: PMV) – gained 28.9%

The Premier Investments share price outperformed all its peers last year, surging from where it ended 2020 – $23.51 – to finish 2021 at $30.32.

Those who frequent shopping centres have likely seen the company’s brands. It owns the likes of Smiggle, Jay Jays, Peter Alexander, and Dotti.

A trading update in January got the stock off to the right start last year and its continued strong performance kept it on track.

Super Retail Group Ltd (ASX: SUL) – gained 18.3%

After closing 2020 at $10.53, the Super Retail share price took off over 2021 to end the year at $12.46 – a gain of 18.32%.

Like Premier Investments, shoppers will probably be familiar with the company’s brands, which include BCF, Rebel, and Supercheap Auto.

The best day of 2021 for the Super Retail share price came on 7 October when it gained 7%, potentially spurred by a broker upgrade.

Wesfarmers Ltd (ASX: WES) – gained 17.6%

ASX 200 giant Wesfarmers has landed on this list, taking out the final medal for retail shares.  

The company’s stock grew from $50.40 at the end of 2020 to finish 2021 at $59.30.

Over 2021, Wesfarmers worked to takeover the owner of Priceline stores, Australian Pharmaceutical Industries Ltd (ASX: API).

The company operates retail stores including Kmart, Officeworks, and Bunnings.

Woolworths Group Ltd (ASX: WOW) – gained 14%

The Woolworths share price also outperformed the market in 2021 – just.

Its stock was swapping hands for $33.30 at the end of 2020. Come the final session of 2021, it closed at $38.01. That represents a 14.1% gain.  

The major news of Woolworths last year was, of course, the demerger of Endeavour Group Ltd (ASX: EDV).

Through the demerger, the company spun out its drinks businesses, including Dan Murphy’s and BWS, into a stand-alone ASX-listed company.

Harvey Norman Holdings Limited (ASX: HVN) – gained 5.3%

Finally, while the Harvey Norman share price didn’t manage to beat the market last year, it did land itself in fifth place on this list.

The stock started the year off well, surging to a multi-year high of $4.93. Then, in February, it hit a 10 year high of $5.68.

Harvey Norman didn’t hold onto those early gains. It ended the year trading at $4.94. Though, that’s still higher than where it finished 2020 – at $4.69.

That’s despite the company’s share price falling all 3 times the company released periodic earnings last year. First in February, again in August, and once more in November.

The post There were the 5 best performing ASX 200 retail shares of 2021 appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd., Super Retail Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX 200 retail shares slump despite higher-than-expected sales

A woman sits with her head down and colourful retail shopping bags all around her.

Strong retail sales data released today failed to lift sentiment towards ASX 200 retail shares this afternoon.

Retail trade jumped 7.3% month-on-month to $33.4 billion in November last year, according to the Australian Bureau of Statistics (ABS).

That’s around twice what economists surveyed by Bloomberg were expecting, reported The Australian, and is 5.8% above November 2020.

Big rebound in consumer discretionary spending

The increase marked the largest monthly improvement since May 2020 when retail trade surged 16.6%. That followed a 17.4 per cent plunge in the first round of COVID-19 lockdowns in April that year.

Consumer discretionary goods are leading the rebound in retail sales. Footwear and personal accessory retailing surged 38.2% in November, department stores added 26% and household goods improved 11.6%.

But ASX 200 retail shares aren’t celebrating today. The Premier Investments Limited (ASX: PMV) share price closed down 1.75%, Wesfarmers Ltd (ASX: WES) shares fell 1.35%, and the JB Hi-Fi Limited (ASX: JBH) share price dropped 0.55%.

In fact, the retail sector fell in sympathy with the S&P/ASX 200 Index (ASX: XJO), which ended the day down 0.77%.

Why are ASX 200 retail shares underperforming?

There could be a few reasons for this. The latest ABS figures were promising, but that was two months ago. Markets are forward-looking, so historical data isn’t quite as exciting for ASX investors.

In the meantime, retail sales are facing some headwinds. Findings by the Australian Retailers Association (ARA), released on Monday, show three-quarters of retailers currently have staff in isolation due to COVID-19.

The findings also show that 50 per cent of businesses ranked “staff shortages” as their main challenge. This was followed by “lack of customers” and “supply chain/delivery issues”.

Coles Group Ltd (ASX: COL) last week reported they were suffering supply issues. This was followed by similar claims by Woolworths Group Ltd (ASX: WOW) yesterday.

The New South Wales and Victorian state governments are also starting to reimpose some social restrictions.

There are worries the malaise will last for a while yet, and if there is one thing investors hate, it’s uncertainty.

Confidence takes a blow

Little wonder that consumer confidence has taken a blow. The latest ANZ-Roy Morgan Consumer Confidence index fell 2.4 points to 106.0 during the first week of January. The reading is 2.9 points below January 2021.

The spread of Omicron is cited as the key reason for the decline with 14% of Australians expecting “good times” for the Australian economy over the next 12 months – a drop of 5 percentage points from the previous survey.

In contrast, 24% of Aussies expect “bad times”, which is a 4 percentage point increase over the last survey.

The post ASX 200 retail shares slump despite higher-than-expected sales appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The City Chic (ASX:CCX) share price tumbled 8% today. What’s happening?

sad woman sitting with shopping bags

It’s been another tough day for the City Chic Collective Ltd (ASX: CCX) share price, continuing a shocking run for the fashion retailer.

The company’s shares closed down 8.4% at $4.47 apiece. That’s five consecutive days of falls for the retailer’s share price.

Let’s take a closer look at what is going on with City Chic.

What’s impacting City Chic?

The City Chic share price slumped today despite no news from the company. One explanation for this drop could be a fall in consumer confidence in the retail sector due to COVID-19 Omicron fears.

Consumer confidence was down 2.2% compared to 18-19 December, a survey from ANZ-Roy Morgan released today revealed. Analysts attributed this result to the “rapid rise of Omicron cases across Australia”.

For perspective, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) finished the trading day down 0.9%, while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) closed down 2.13%.

The City Chic share price has dropped 18.55% since the start of January.

That said, my Foolish colleague James recently reported broker Bell Potter gave the company’s shares a $7.40 price target.

The last price-sensitive news from the company was on November 17. City Chic shares soared nearly 6% on the back of a well-received annual general meeting update. Sales revenue grew 32.9%, while comparable sales growth was 31.6%.

The company’s global customer base also grew 61% from the previous year to more than 1 million.

City Chic share price snapshot

The City Chic share price has returned around 19% in the past year. That’s 9% more than the benchmark S&P/ASX 200 Index (ASX: XJO).

In the past month, its shares have lost 21%, while they are down nearly 19% in the past week.

The company commands a market capitalisation of roughly $1 billion based on the current share price.

The post The City Chic (ASX:CCX) share price tumbled 8% today. What’s happening? appeared first on The Motley Fool Australia.

Should you invest $1,000 in City Chic Collective right now?

Before you consider City Chic Collective , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and City Chic Collective wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Here’s why the Vmoto (ASX:VMT) share price is powering ahead by 10% today

two elderly men smile as the ride past on two wheel scooters with the leader holding his walking stick in the air and smiling broadly for the camera.

The Vmoto Ltd (ASX: VMT) share price has rocketed to a 9-month high today. This comes after the company announced profit guidance for the 2021 financial year.

At market close, the electric-powered scooter manufacturer’s shares were up 9.52% to 46 cents apiece. That’s after hitting an intraday high of 49 cents this morning.

Vmoto continues to accelerate sales growth at a rapid pace

The Vmoto share price pushed higher after investors digested the company’s latest announcement.

According to its release, Vmoto advised it has sped up its international strategy, delivering record sales units to key markets.

In total, more than 30,000 units were sold in FY21, representing a significant 27.4% increase on the prior corresponding period.

As a result, the company expects to achieve FY21 net profit after tax (NPAT) between $7.5 million and $7.8 million. Notably, this will be the largest net profit ever recorded in Vmoto’s history. To put this into perspective, NPAT stood at $3.7 million for the 2020 financial year.

The company highlighted that it had completed a number of operational and commercial milestones in FY21. This included generating positive operational cash flows leading to a strong cash positive with no bank debt.

Furthermore, Vmoto’s presence also expanded as more international B2C (business to consumer) distributors were secured, bringing the total to 58 across 62 countries. Its B2B (business to business) operations also grew through the use of increased popularity in delivery and ride-sharing services.

Vmoto managing director, Charles Chen commented:

I am delighted to announce we will deliver a significant increase in NPAT for this financial year when compared to 2020.

We remain confident the underlying fundamentals of the business will continue to deliver strong growth throughout key international markets. We are also extremely excited to have launched the new Vmoto premium brand and products having worked alongside a number of top industrial design partners in Europe to bring a wider range of products to the international markets.

Quick take on Vmoto

Vmoto Limited is a leading global scooter manufacturer and distribution group specialising in electric powered two-wheel vehicles. Vmoto’s electric-powered two-wheel vehicle products have chic European design and German engineering.

Last year, Vmoto undertook an extensive strategic review of operations with the intention of simplifying the company’s structure. This allowed management to focus on international sales and marketing of electric two-wheel vehicle products.

Vmoto share price summary

It’s been a sound year for Vmoto shareholders, having gained around 15% in the last 12 months of trading. However, the company’s shares have started 2022 on a positive note and are up more than 8% to date.

In the last month, the Vmoto share price regained support and climbed by more than 17%, despite no new updates from the company.

Based on today’s price, Vmoto has a market capitalisation of around $130 million and a price-to-earnings (P/E) ratio of 22.14.

The post Here’s why the Vmoto (ASX:VMT) share price is powering ahead by 10% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vmoto right now?

Before you consider Vmoto, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vmoto wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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