Five niche ASX retail stocks that are winners in 2020 in defiance of COVID-19
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Australia’s retail segment has had tough times this year but a few ASX retail stocks were winners.
While larger department stores such as Myer (ASX:MYR) lost ground to ecommerce plays, these stocks met niche consumer segments whose demand was unchanged by COVID-19.
This retailer sells personal care products such as shavers and hair stylers. People needing haircuts during COVID-19 lockdowns had to DIY with hairdressers forced to close or scale back operations.
Shares are up 66 per cent in 12 months and 77 per cent in six months.
Baby needs, such as nappies and baby wipes, was another consumer staple that didn’t slow down during lockdowns, and it brought Baby Bunting good fortune in 2020.
In the first four and a half months of 2020, sales grew by 13.2 per cent compared to the prior corresponding period. It finished FY 20 with sales totalling $405.2 million and a profit of $19.3 million – up 34 per cent from FY19.
The company also saw comparable stores growth of 20 per cent in the first six weeks of FY21. Unlike some other of its peers, it was not forced to close its stores being an essential service, but saw online growth too.
This company owns several motorbike and motorbike accessory dealerships across Australia.
Shares have doubled in six months.
Accent Group specialises in shoes and owns several brands which run stores in their own right including The Athlete’s Foot, Pivot and Style Runner.
The company made a $58 million profit after tax in FY20 and has kicked off FY21 on a similarly solid note.
Like for like sales were up 16 per cent so far in FY20 even with stores in Victoria and Auckland being forced to close.
In the first few months of 2020 overall sales climbed 15.5 per cent and online sales climbed 77.7 per cent. It finished FY20 with a revenues of $252.2 million and a net profit after tax of $22.2 million.
The momentum continued into the first quarter of the new financial year as overall sales rose by 24.3 per cent and online sales were up by 156 per cent.
Last month, Beacon revealed it made a profit after tax of $8.4 million in the quarter and predicted the rest of the year would continue to be a success.
While Beacon shares are only up by 9 per cent in 12 months they are up 69 per cent in 12 months.