Why are ASX 200 retail shares having such a stellar run today?

The S&P/ASX 200 Index (ASX: XJO) is having a decent, if unimpressive, day of trading so far this Wednesday. At the time of writing, the ASX 200 is up by 0.2% at just over 7,120 points after stints in both positive and negative territory today. But unlike the ASX 200, there is one sector that seems to have made up its mind about what it wants to do – ASX 200 retail shares.

Many ASX retail shares are on fire today. In fact, the current best-performing ASX 200 share on the entire index is Super Retail Group Ltd (ASX: SUL). Its shares have rocketed almost 8% higher.

But we are also seeing robust moves across the whole sector. City Chic Collective Ltd (ASX: CCX) is another standout performer, having gained more than 3.5% so far today. Harvey Norman Holdings Limited (ASX: HVN) is up 1.4%, similarly with JB Hi-Fi Limited (ASX: JBH).

Although it’s not an ASX 200 share, candle retailer Dusk Group Ltd (ASX: DSK) is another strong shower, recording a 3.3% gain so far.

So what’s going on with the ASX 200 retail sector today?

Why are ASX 200 retail shares on fire today?

Well, it could come down to a few factors. The first worth mentioning is Super Retail itself. This company’s 6%-plus surge today comes after the retailer reported its FY22 earnings this morning. As we went through, the company reported increased revenues over its FY21 numbers, but a drop in profits. 

Its declared final dividend of 43 cents per share also came in lower than last year’s final dividend of 55 cents. Nevertheless, investors have clearly liked what they have seen today (or perhaps were expecting worse), judging by the massive gains Super Retail shares are now enjoying. 

This positive sentiment could be spilling into the other ASX 200 retail shares on the market today.

Another factor to consider is last night’s (our time) trading session over in the United States. As our Fool colleagues over in America covered, last night’s session also saw the US retail sector record some strong moves.

The giant retailer Walmart reported earnings of its own. These were well-received, with Walmart stock rising more than 5%. This spilled over into many other US retail shares, including Nordstrom, Stitch Fix and Gap. 

So it’s possible these moves are influencing our own ASX markets today.

Whatever the reasons, it’s certainly been a pleasing day for most ASX 200 retail shares this Wednesday.

The post Why are ASX 200 retail shares having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• Super Retail Group share price jumps 8% on soft FY22 results
• 2 surprisingly ‘robust’ ASX shares to buy in current climate: expert
• JB Hi-Fi share price dips as full-year dividend jumps 43%
• Could this ASX 200 share be heading for a short squeeze?
• 2 ASX 200 dividend shares with ~7%+ yields that experts rate as buys

Motley Fool contributor Sebastian Bowen has positions in Dusk Group Limited and Walmart Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd., Super Retail Group Limited, and Walmart Inc. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Super Retail Group Limited. The Motley Fool Australia has recommended Dusk Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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