The retail environment isn’t getting any better. If anything, macro conditions could become more challenging although this doesn’t mean all retail stocks will disappoint at the next profit reporting season.
On that happy note, Citigroup has looked at the small cap retailers under its coverage to pick the stocks that are best placed to deliver a pleasant earnings surprise next month.
The stocks that are best placed to beat the street (meaning to deliver profits above consensus forecast) include footwear company Accent Group Ltd (ASX: AX1), furniture retailer Nick Scali Limited (ASX: NCK), apparel and stationery group Premier Investments Limited (ASX: PMV) and auto accessories and outdoor gear chain Super Retail Group Ltd (ASX: SUL).
Industry feedback suggests that footwear sales in the January half remained strong and Accent should be well placed to capitalise on this though its new product launches (such as Nike) and strong momentum in its licensed brands Vans and Sketchers.