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The International Monetary Fund (IMF) released its latest world economic outlook update yesterday, forecasting stronger global economic growth than previously expected.

Based in Washington DC, the IMF is a financial institution that consists of 190 countries. Essentially, the IMF endeavours to oversee and steer global monetary policy while also addressing social problems like climate change and poverty.

As part of this work, the IMF releases its world economic outlook update twice a year. The report offers a detailed analysis of the global economy.

So what can we learn from the IMF’s latest report?

Things are looking up

The Australian Financial Review (AFR) points out that the revised January 2021 world economic forecast is up by 0.3 percentage points from the previous outlook.

The revised outlook stems from certain economies navigating through the coronavirus pandemic better than projected. The IMF stated that the increased outlook for 2021 reflected “additional policy support in a few large economies and expectations of a vaccine-powered strengthening of activity later in the year, which outweigh the drag on near-term momentum due to rising infections.”

According to the outlook, third quarter GDP was stronger than expected in a number of countries including Australia, India, Japan, Korea, New Zealand, Turkey and the United States.

The Australian notes today that IMF predicts the Australian economy will grow by 3.5% this year. This is 0.5% higher than October 2020’s forecast.

Uncertain world economic growth

The IMF advises that its latest economic projections come “amid exceptional uncertainty”, largely due to the coronavirus. 

Regarding the IMF’s world economic analysis, the report says that the key underlying uncertainties in the data models are COVID infection numbers and the efficacy of vaccine rollouts.

The outlook strongly advises that vaccines, therapies and containment efforts will have to progress smoothly to meet current growth targets.

However, as reported by the AFR, there’s always the chance that the coronavirus battle could move on more quickly and efficiently than expected, which might result in a global growth that’s stronger than forecasted.

Foolish takeaway

The IMF’s economic outlook is just one available resource to help form your own opinions about the state of the global economy.

Uncertainty and volatility are just as common in big-picture IMF forecasts as they are in the everyday trading markets. For now, it looks like economies around the world are showing signs of improvement. 

Let’s hope that this is a developing trend and we continue to see more of it.

More reading

• This ASX company will double its earnings this year: fundie
• The Genesis Energy (ASX:GNE) share price is up today. Here’s why
• ASX 200 down 0.7%: BHP & Fortescue tumble, Reliance rockets, CSL downgraded
• 3 ASX dividend shares to buy in February 2021
• Why Booktopia, Nitro, Reliance, & Vulcan shares are charging higher

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ASX shares involved in the housing sector are set to boom this year, according to a fund manager — but one company looks especially attractive.

Near-zero interest rates and the dumping of responsible lending laws have put a rocket under Australian real estate.

UBS has predicted a 10% increase in prices this year. The RBA calculated a low cash rate could inflate the market by 30% over the next 3 years.

Tribeca Investment Partners portfolio manager Jun Bei Liu told a GSFM briefing last week that the housing industry has recovered very sharply from the COVID-19 recession.

“Building approvals have been positive. Who would’ve thought it would turn positive so quickly?” she said.

“We have finance approvals, credit growth has started picking up, we have housing prices starting to improve, listing volumes have started picking up and we have a very strong consumer market at this point.”

4 ASX shares set to cash in on housing boom

But investors still need to be discriminating among the ASX shares playing in that field.

“I like to keep with quality and I like to stay with companies that have proven [they can] generate long-term value,” Liu said.

“CSR Limited (ASX: CSR) is one that’s directly linked to housing approvals.”

There are also retailers that will cash in from a housing boom, with Australians buying goods to fill up new spaces.

“JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) are examples of housing retailers [and] how much they will benefit,” said Liu.

“Analysts are absolutely underestimating the operating leverage these businesses will have. I think the [positive] operating environment for the housing retailers will go on for quite some time.”

But there is one specific company that Liu’s team is really licking their lips about.

“We are big believers in Domain Holdings Australia Ltd (ASX: DHG),” Liu said.

“This business will double its earnings in the next 12 months. It’s actually one of the highest growth businesses within the Australian market.”

The Domain share price is currently trading 3.31% higher at $4.66 on Wednesday (at the time of writing). It was going for $3.80 exactly 12 months ago, just before the coronavirus market crash.

More reading

• 3 high-yielding ASX 200 dividend shares
• Why Frontier Digital Ventures, JB Hi-Fi, Regis, & Tyro are dropping lower
• 2021 has its worries… even for an optimist
• Is the JB Hi-Fi (ASX:JBH) share price overvalued now?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tony Yoo 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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The Genesis Energy Ltd (ASX: GNE) share price is up 3.74% to $3.61 in late morning trade, bucking the wider market slide that’s seen the All Ordinaries Index (ASX: XAO) fall 0.78%.

This follows the release of the Kiwi energy company’s second quarter performance report.

Quarterly performance powers up

In its retail sector, Genesis reported its LPG business for Q2 was the strongest summer period ever for the company. The company attributed the growth to an increase in residential customers in the main centres, alongside strong growth from its new depot in Whangarei.

While cost to serve (CTS) trended lower, the company noted some delayed costs will impact CTS in the second half of the 2021 financial year by around $1. It also reported an increase in customer churn, due to a 10% increase in national home moving switches in its New Zealand market.

On the sustainability front, Genesis confirmed its commitment to a science-based target in line with limiting global warming to 1.5 degrees Celsius. The company has pledged to reduce emissions by 1.2 million tonnes or more by 2025.

Commenting on the company’s sustainability commitments, Genesis Energy’s CEO Marc England said:

Genesis has committed to the most aggressive emissions reduction target by a New Zealand energy company. We chose the 1.5-degree target knowing it will be difficult but achievable with the right planning and pathway.

The company’s Waipipi development is forecast to be fully operational by March. Generation already started back in November, producing 30 Gwh of renewable energy in Q2. Noting that La Nina may reduce South Island inflows in the third quarter, Genesis said it may be asked to provide additional thermal back-up energy to the market.

Genesis Energy has a 46% interest in the Kupe Joint Venture, which owns the Kupe Oil and Gas Field offshore of Taranaki, New Zealand. It reported the Kupe strategic review is on track with conclusions expected by mid-2021.

Genesis Energy share price and company snapshot

Genesis Energy sells electricity, reticulated natural gas and LPG through its retail brands of Genesis Energy and Energy Online to customers in New Zealand. With some 500,000 customers, the company is New Zealand’s largest energy retailer. Genesis is listed on both the New Zealand and Australian exchanges. Shares first listed on the ASX in April 2014.

With today’s intraday gains, the Genesis Energy share price is up 17.2% over the past 12 months. Shares are up 4.6% so far in 2021.

More reading

• ASX 200 drops 1.1%
• Here’s how ASX renewable energy shares have performed in 2020

Motley Fool contributor Bernd Struben 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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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is currently down 0.7% to 6,775.2 points.

Here’s what is happening on the market today:

Iron ore miners tumble

BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) shares are tumbling lower on Wednesday and are acting as a major drag on the ASX 200. The Fortescue share price is the worst performer in the group with a decline of over 6%. Investors have been selling their shares after the iron ore price pulled back. According to CommSec, the iron ore price fell by US$3.85 or 2.3% to US$164.65 a tonne after Chinese steel mill profitability weakened.

Reliance update impresses

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is surging higher today following the release of its half year update. According to the release, the plumbing parts company achieved net sales of $642 million for the six months ending 31 December. This was up 13% on the prior corresponding period. Things were even better for its earnings, with EBITDA expected to be in the range of $164 million to $167 million. This will be up at least 30% versus the same period last year.

CSL downgraded

The CSL Limited (ASX: CSL) share price is dropping lower today after being downgraded by analysts at Ord Minnett. The broker has downgraded the biotech giant’s shares to a hold rating and cut the price target on them to $293.70. It has concerns that rising COVID cases in the United States is hindering the plasma collections recovery.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Reliance share price following its strong half year update. It is up 7% at lunch. Going the other way, the worst performer has been the Fortescue share price with a decline of just over 6% following the pull back in the iron ore price.

More reading

• Why Booktopia, Nitro, Reliance, & Vulcan shares are charging higher
• These ASX dividend shares will help you overcome low interest rates
• 5 things to watch on the ASX 200 on Wednesday
• ASX property stocks are likely to beat property investments in 2021
• Experts want Big Tech to stop the spread of COVID-19 misinformation

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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There are some ASX dividend shares that could be worth considering in February 2021.

Businesses that pay out some of their profit to investors each year may be able to generate a higher yield for income-seekers.

Here are three ASX dividend shares with yields of at least 3%:

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that is run by Charter Hall Group (ASX: CHC). It aims to invest in high quality real estate assets that are predominately leased to corporate and government tenants on long term leases.

The ASX dividend share has 459 properties with a total value of $4.23 billion. Around 53% of the leases are triple net leases, which means tenants are responsible for things like rates, insurance, repairs and maintenance and land tax.

The REIT has an occupancy rate of 97.3% and a weighted average lease expiry (WALE) of 14.2 years.

It has major tenants that make up a lot of the rental income – Telstra Corporation Ltd (ASX: TLS) is responsible for 19%, government entities make up 16%, BP makes up 14% of the rental income and Woolworths Group Ltd (ASX: WOW) makes up 13%.

In terms of sector diversification, industrial properties make up 26%, long WALE retail is 29%, office is 24%, telco exchanges is 15% and agri-logistics is 6%.

Analysts at Macquarie Group Ltd (ASX: MQG) likes the guidance of at least 29.1 cents per share, with the REIT’s good yield, cashflow and certainty provided by strong tenant agreements.

Charter Hall Long WALE REIT has an expected yield of at least 6.3% using a payout ratio of 100%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX dividend share with the longest dividend growth record. The old investment conglomerate has grown its dividend every year since 2000.

The Soul Patts share price has fallen 8% over the past month, which has had the effect of pushing up the trailing dividend yield, which is now 3.1%.

It has a diversified portfolio which displays different defensive characteristics and continue to pay dividends despite the difficult operating conditions because of COVID-19. Some of the biggest dividend payers for Soul Patts from its portfolio are: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).

Soul Patts funds its own dividend from the investment income it receives. It also makes its own profit from private operating businesses like swimming schools, resources and agriculture.

If the ASX dividend share increases its annual dividend by 2 cents per share in FY21, at the current Soul Patts share price it has a forward grossed-up dividend yield of 3.2%.

APA Group (ASX: APA)

APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

After Soul Patts, APA is one of the next ASX dividend shares that has the longest consecutive growth streaks, it has been going up for around a decade and a half.

The energy infrastructure giant funds its dividend from growing operating cashflow, which is increasing as more of APA’s projects are finished. APA recently announced a pipeline in WA which could unlock further requests from miners for a connection for cheap and reliable energy.

At the current APA share price it offers a distribution yield of 5.3%.

More reading

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• 3 ASX dividend shares rated as strong buys by brokers
• Got money to invest for dividends? Here are 3 ASX shares

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Macquarie Group Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has returned from the public holiday in a disappointing fashion. At the time of writing, the benchmark index is down 0.7% to 6,777.9 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why they are charging higher:

Booktopia Group Ltd (ASX: BKG)

The Booktopia share price has jumped over 11% to $2.95 following the release of its half year update. The online book retailer revealed that it had both a record month in December and a record half. Booktopia shipped a record 728,000 units during the final month of the year, bringing its total shipments to 4.2 million units for the half. This was a 40% increase on the same period last year. This led to a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted EBITDA to $8 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price has stormed 5.5% higher to $3.23. Investors have been buying the document productivity software company’s shares following the release of a strong fourth quarter update. At the end of the quarter, Nitro’s annualised recurring revenue (ARR) stood at US$27.7 million. This was up 64% on the prior corresponding period and ahead of its previously upgraded guidance of US$26 million to US$27 million.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance share price has surged 8% higher to $4.43. The catalyst for this was the release of a half year update by the plumbing parts company. According to the release, Reliance has achieved net sales of $642 million for the six months, which is up 13% on the prior corresponding period. EBITDA is expected to be in the range of $164 million to $167 million, up at least 30% versus the same period last year.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price has jumped 13% to $8.22. Investors have been buying the clean lithium developer’s shares after it refuted media speculation that it was planning to raise capital. Vulcan advised that it is undertaking a non-deal roadshow and has no immediate plans to launch a capital raising.

More reading

• Why the Vulcan (ASX:VUL) share price is storming 12% higher today
• Why the Booktopia (ASX:BKG) share price is rocketing 15% to a record high
• Here’s why the Nitro Software (ASX:NTO) share price is surging 7% higher today
• 5 lithium shares that are fast-charging up in 2021
• 3 exciting small cap ASX shares to watch very closely

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Nitro Software Limited and Reliance Worldwide 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 Vulcan Energy Resources Ltd (ASX: VUL) share price is back on form again and is storming higher on Wednesday.

At one stage today the clean lithium developer’s shares were up as much as 12.5% to $8.19.

The Vulcan share price has since given back some of these gains but remains up 8.5% to $7.90 at the time of writing.

Why is the Vulcan share price storming higher?

Investors have been buying Vulcan shares today after it responded to media speculation that it could be about to undertake a capital raising.

According to the release, Vulcan is not conducting a capital raise at this point in time. Instead, it advised that it is undertaking a non-deal roadshow with potential investors.

The AFR had suggested that this roadshow could be a pre-requisite before launching a capital raising to fund future work at its lithium project in Europe.

Chief among these will be the starting capital cost of 226 million euros for geothermal energy plants and 474 million euros for direct lithium extraction and processing plants. After which, its phase two total capital expenditure is forecast to be 1.14 billion euros.

This means its full project costs with no phasing could come to a sizeable 1.74 billion euros by the time it is operational in 2024. But investors certainly believe this investment will be worth it based on its pre-feasibility study (PFS).  

According to its announcement, the Zero Carbon Lithium Project’s first PFS demonstrates strong potential to develop a cutting edge, combined renewable energy and lithium hydroxide project, in the centre of Europe, with net zero carbon footprint.

The study also reveals that the project has an after tax net asset value of 2.25 billion euros. This equates to approximately A$3.5 billion.

What’s next for Vulcan?

The company’s main focus in 2021 will be the Definitive Feasibility Study (DFS) work at the project.

It is also working on permitting, the scale up of lithium extraction test-work, and advancing its current discussions with European lithium offtakers.

The Vulcan share price is now up 185% since the start of 2021.

More reading

• 5 lithium shares that are fast-charging up in 2021
• Here’s why the AVZ Minerals (ASX:AVZ) share price is surging higher today
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• Why Vulcan (ASX:VUL) and these ASX shares are smashing the market in 2021
• We have lift-off: Vulcan Energy (ASX:VUL) share price hits new heights

Motley Fool contributor James Mickleboro 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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Shares in plus-size women’s clothing retailer City Chic Collective Ltd (ASX: CCX) stormed to a new all-time high price of $4.24 on Monday. This means that, since it bottomed out at 71.5 cents during the COVID-19 panic sell-off in March last year, the City Chic share price has gained nearly 500%!

This puts its 12-month performance well ahead of more established ASX clothing retailers like Premier Investments Limited (ASX: PMV), which owns the Just Jeans and Peter Alexander brands.

What’s driving the City Chic share price?

Despite COVID-19 lockdowns forcing temporary store closures across Australia and New Zealand for big chunks of 2020, City Chic was still able to increase sales last financial year by pivoting towards online channels and tapping into the United States market.

City Chic also made a number of key strategic acquisitions in 2019 and 2020 that have helped boost its global presence. The company will be hoping these acquisitions pave the way for further growth in both Europe and the US – particularly as those economies recover post-coronavirus.

Now, to the financials. Despite the many market challenges, FY20 was a solid year for City Chic. Top line revenue increased by 31% year on year to $194.5 million, and global active customer numbers increased by 72% to over 650,000. Statutory NPAT came in at $9.7 million for the year, a drop of almost 40%, but this decline was due in large part to higher discounting to support customer numbers during COVID-19, as well as higher logistics and freight costs due to greater numbers of online sales.

The result showed how City Chic’s expansion into new markets was helping the company to continue growing its revenues during the pandemic. Although sales dropped by 4.8% year on year in Australia and New Zealand due to COVID lockdowns, sales in the Northern Hemisphere surged 179% higher. In fact, the Northern Hemisphere accounted for over 40% of City Chic’s total sales for FY20.

US sales were boosted by the October 2019 acquisition of the e-commerce assets of US plus-size retailer Avenue for US$16.5 million. This grew City Chic’s market penetration in the US and helped to double the company’s online sales in FY20.

City Chic had also hoped to acquire the e-commerce assets of US-based brand Catherine’s, but its bid was unsuccessful. However, although this deal fell through, in December the company announced it had acquired the e-commerce and wholesale assets of United Kingdom-based women’s plus-size brand Evans for 23.1 million pounds. Evans is a well-established UK high street brand with a 90-year history and a large customer base. For the 12 months leading up to August 2020, the Evans website had over 19 million visits and generated 23 million pounds in sales.

Forecast for FY21

Continued uncertainty surrounding the economic impacts of COVID-19 has made it difficult for City Chic to make any definitive earnings forecasts for FY21. However, the company has stated it remains focused on several growth initiatives for the year ahead. These include pursuing further acquisitions in the Northern Hemisphere, investing in the expansion of its online presence, and improving engagement with its Avenue customers in the US.

At the time of writing on Wednesday, the City Chic share price is trading at $4.10, down 1.4% for the day so far.

More reading

• These ASX clothing retailers’ share prices are storming to record highs
• 3 ASX shares rated as strong buys by brokers
• 2 exciting small cap ASX shares to buy
• 2 great ASX growth shares to buy for January
• Why Galaxy (ASX:GXY) and these ASX shares just hit 52-week highs or better

Motley Fool contributor Rhys Brock 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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The Synlait Milk Ltd (ASX: SM1) share price is up 5.3% in morning trading, following an upgrade on the company’s base milk price forecasts.

Why did Synlait Milk upgrade its milk price forecast?

In an update released to the ASX this morning, Synlait Milk increased its forecast base milk price for the 2020–2021 season by 12.5%. The new forecast is $7.20 /kg milk solids (kgMS), up from $6.40 /kgMS.

The company decided to increase its base milk price forecast after a large rise in dairy commodity prices over the past few months. Synlait believes the rest of this milk season will see commodity prices remain near their current levels.

Commenting on the revised price forecast, Synlait Milk’s supply manager David Williams said:

Despite the wider global uncertainty, dairy commodity prices have remained robust and a higher forecast base milk price will be welcomed by our Synlait farmer suppliers. We are grateful for their continued support.

The company said it will continue monitoring price movements for its farmer suppliers, noting that its forecasts are based on the best information currently available. Its next price update is expected in May.

Synlait Milk company and share price snapshot

Synlait Milk is a New Zealand-based company, listed on both the New Zealand and Australian share exchanges. The company works with more than 200 milk suppliers to provide global access to quality dairy products. Synlait’s cheese manufacturing facility, Talbot Forest Cheese, is based in Temuka.

Synlait shares first began trading on the ASX in November 2016. The company has a market cap of $949 million.

2020 was a difficult year for Synlait shareholders. The share price crashed more than 48% through to 19 March during the wider COVID-19 market panic. Though shares rebounded strongly from there, gaining 66% by 17 April, it’s been mostly downhill from there.

Synlait’s largest customer is A2 Milk Company Ltd (ASX: A2M). And a2 Milk has taken an unexpectedly hard hit from reduced daigou trading. (That’s where individuals or syndicates purchase products – baby formula in this case – in Australia and resell those in China.) As a result, in December Synlait forecast that its 2021 financial year net profit after tax (NPAT) will be roughly half of the 2020 figures.

Over the past 12 months, the Synlait Milk share price is down 46%. Year-to-date so far in 2021, its shares are down 7%.

More reading

• Why the City Chic (ASX:CCX) share price is trading near record highs
• These ASX clothing retailers’ share prices are storming to record highs
• Moderna says vaccine protects against all known variants
• Why the 4DMedical (ASX:4DS) share price is soaring higher
• Why the Booktopia (ASX:BKG) share price is rocketing 15% to a record high

Motley Fool contributor Bernd Struben 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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With COVID-19 vaccine rollouts now advancing in many nations across the world, there is a renewed sense of optimism about the end of the pandemic and a potential near term economic recovery.

Although the vaccine distribution is yet to commence here in Australia, our success in dealing with localised outbreaks has meant that we have already been able to safely open up our economy and return to some degree of normal life.

We can see this in sectors such as the retail industry which bounced back over the Christmas period. The Australian Bureau of Statistics estimated that seasonally adjusted turnover increased by 9.4% year-on-year in December 2020.

This unexpected jump in retail activity has helped buoy the share prices of many local retailers. Here are four clothing brands that have seen their share prices soar to new highs recently.

Premier Investments Limited (ASX:PMV)

With a market cap approaching $3.7 billion, Premier Investments is the largest and most established retail company on this list. It owns the Just Group, which includes the Just Jeans, Peter Alexander, and Jay Jays brands. Premier Investments also has a 28% stake in household electrical appliances manufacturer Breville Group Limited (ASX:BRG).

In a trading update released to the market earlier this month, Premier Investments stated that it expected first half FY21 earnings before interest and tax expenses (“EBIT”) to be in the range of $221 million to $233 million, an increase of between 75% and 85% on first half FY20.

Its share price briefly jumped to a new all time high of $26.70 on the back of that update. While it has pulled back to $23.10 as at the time of writing, it is still up a touch over 25% in the last twelve months.

Globe International Limited (ASX:GLB)

Globe manufactures and distributes a range of street fashion, skating equipment, outdoor clothing, and workwear. Among its proprietary brands is skate and apparel brand Globe, as well as surfing apparel brand Salty Crew. It also owns the Australian distribution rights for well known American streetwear brand, Stüssy.

Globe International released a trading update on 18 January. It  was reported that preliminary sales numbers of approximately $125 million for the first half of FY21, an uplift of 60% versus first half FY20. More importantly, EBIT was also expected to come in at more than $20 million – an increase of over 370%.

Its share price skyrocketed on the news. In just this month alone it has surged almost 70% higher. Over the last twelve months it is up close to 190%.

Accent Group Limited (ASX:AX1)

Accent Group is the largest footwear retailer in Australia. It operates over 400 stores across Australia and New Zealand and has exclusive distribution rights for a number of well known international brands including Dr. Martens, Skechers, and Timberland.

Accent Group also released a trading update earlier this month in which it announced that stronger than expected sales in November and December had resulted in a jump in first half FY21 earnings before interest, tax, depreciation, and amortisation expenses (EBITDA). It now expects EBITDA in the range of $95 million to $98 million, an increase of up to 45% versus first half FY20.

The Accent Group share price has surged over 40% higher in the last twelve months.

City Chic Collective Limited (ASX:CCX)

Last on the list is plus sized women’s clothing retailer, City Chic. Despite store closures causing a dip in City Chic’s sales across Australia and New Zealand in FY20, the company still managed to increase Group revenues due to its growing presence in the Northern Hemisphere.

It acquired the eCommerce assets of American brand the Avenue in October 2019, which boosted its market penetration in the US and also helped to double its online sales for the year. In December, City Chic also announced it had acquired the eCommerce and Wholesale assets of UK-based women’s plus size brand, Evans.

This willingness to expand into new markets has delivered big gains in the company’s share price.

It recently set a new record high price of $4.24, and is up almost 50% over the last twelve months.

More reading

• Why the City Chic (ASX:CCX) share price is trading near record highs
• 2 fantastic ASX dividend shares with attractive yields
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Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX clothing retailers’ share prices are storming to record highs appeared first on The Motley Fool Australia.

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