You might not have shares in these companies, yet, but chances are you've heard of them.
These household name small-cap retail stocks are all worth keeping an eye on right now.
Here's why.
Nick Scali Limited (ASX: NCK)
It's highly likely if you've bought a new lounge suite recently you've flicked through a few Nick Scali brochures in your search.
According to an article in The Australian, beyond FY18 Nick Scali aims to grow its network by more than 40% from 53 stores to 75 stores with store rollouts underpinning its sales growth and property market buoyancy providing a favourable backdrop.
With a market cap of $534 million, Nick Scali is still in small-cap territory well and truly, but its Macquarie conference presentation in May highlighted sales were up 8.1% for the half year, with an NPAT increase of 15% and operating expenses down.
Nick Scali named an increased investment in marketing as helping it along, with its continued ability to derive revenue growth from existing infrastructure behind its ability to decrease spending.
While the health of consumer discretionary spending will always impact a company like Nick Scali, its household name status definitely helps it along in tough times.
One to watch.
Noni B Limited (ASX: NBL)
With a modest $296 million market cap, women's apparel and accessories retailer Noni B Limited is a small cap stock – but some think it's one with a big future.
Big name broker Wilsons last month named Noni B as a buy, with a $4.74 price target on the stock which is sitting down 0.3% to $3.07 at the time of writing.
Wilsons was attracted to Noni B's recent acquisition of 5 brands from Speciality Fashion Group Ltd. (ASX: SFH), namely Millers, Katies, Crossroads, Rivers and Autograph – all of which add to Noni B's "household name" status.
Noni B will always be open to discounting competition from peers, and it is no secret that the women's' fashion market can ebb and flow, but with a forecast 1404 stores and turnover of $892 million in FY19, things look bright for Noni B.
Kathmandu Holdings Ltd (ASX: KMD)
Travel and adventure clothing and equipment retailer Kathmandu Holdings reported a strong market update in late June with a 13.8% increase in same-store sales and a full-year net profit forecast of between $48 million and $52 million – a jump of about 30%,
Brokers like Macquarie upped its EPS forecast after the results were reported and increased its share price target to $2.98.
Kathmandu shares were down slightly to $2.65 at the time of writing but hit a post-update 52-week high of $2.74 on June 28.
Kathmandu has a solid global expansion strategy on the cards, but its expansion into the US will likely be done slowly and steadily after a failed expansion into the UK market back in 2015.
A retailer to keep an eye on.
