As we saw with the JB Hi-Fi Limited (ASX: JBH) update yesterday, the retail sector continues to experience tough trading conditions.
While that may be case, that doesn't mean that all retailers are struggling. In fact, some retailers are at the top of their game right now.
Three that I think are worthy of an investment are listed below. Here's why I like them:
Lovisa Holdings Ltd (ASX: LOV)
This fast-growing fashion jewellery retailer would have to be my favourite retail share right now and it isn't hard to see why. At the end of the third quarter Lovisa reported total sales growth of 20.3% so far in FY 2018. While new store openings played a role in this increase, so did its existing store network. Management advised of an acceleration in comparable store sales growth to 7.6% year-to-date. The good news for shareholders is that despite now operating 320 retail stores worldwide, there's still a long runway for growth ahead of the company thanks to its expansion into the UK, Europe, the Middle East, and the United States.
Noni B Limited (ASX: NBL)
Another retailer that has been kicking goals is Noni B. In February this mature women's fashion retailer reported an impressive 35.1% increase in first-half revenue to $193.2 million and a staggering 379.5% lift in first-half profit to $11.8 million. I think the niche market the company operates in is a lucrative and growing one. Furthermore, I feel it is less likely to be disrupted by online retailers such as Amazon or ASOS.
Premier Investments Limited (ASX: PMV)
I think that this retail conglomerate's shares could be a great option for investors due largely to the ongoing success and ambitious international expansion plans of its Smiggle brand. Furthermore, I have been very impressed at the growth of its Peter Alexander brand and the company's e-commerce business. In March management advised that total online sales grew by 71.2% during the first-half to $56 million, putting it on course to achieve its $100 million online sales target two years ahead of schedule.
