The retail industry has been going through a tough time of late with changing consumer habits and lower foot traffic. This has made life increasingly difficult for the likes of Godfreys Group Ltd (ASX: GFY) and Myer Holdings Ltd (ASX: MYR).
But not all retailers are struggling. In fact, the five retail shares listed below have very positive outlooks at present. Here's why I think they are worth buying:
Accent Group Ltd (ASX: AX1)
This footwear retailer recently delivered an impressive half-year result despite the arrival of Amazon in Australia. I expect more of the same in the future thanks to the fact that a good portion of its revenue comes from licensed brands that no other retailer, Amazon included, can sell in Australia.
Baby Bunting Group Ltd (ASX: BBN)
This baby products retailer has been a victim of its own success this year and is suffering from the clearance sales of closing competitors. But with trading conditions now improving, I expect a strong profit result in FY 2019 and beyond as its wins the vacated market share.
Lovisa Holdings Ltd (ASX: LOV)
This fashion jewellery retailer is on fire at the moment and delivered an impressive half-year result last month. I think this strong run still has a lot of legs thanks to its international expansion plans, especially if it makes inroads in the lucrative U.S. market.
Noni B Limited (ASX: NBL)
I thought that this mature women's fashion retailer delivered one of the best half-year results in the sector during earnings season when it posted revenue of $193.2 million and underlying EBITDA of $22.1 million. This was a 35.1% and 54.5% increase, respectively, on the prior corresponding period.
Premier Investments Limited (ASX: PMV)
Last week this retail conglomerate's shares raced to a 52-week high after it posted record underlying earnings before interest and tax of $102.5 million, up 10.2% on the prior corresponding period. The main driver of this growth was its Smiggle and Peter Alexander brands once again. I believe Smiggle, in particular, has enormous growth potential that will allow the company to achieve similarly strong results in the future.
