JBH and Super Retail (SUL) are our preferred ASX retail plays, with the latter residing in our Active Income Portfolio while we recently took profits in JBH for the Active Growth Portfolio. JBH is now up an extraordinary 54% year-to-date again after paying a solid dividend in August. While the rhetoric coming from reporting season overall suggests we should be cautious towards the consumer, not all retailers said this with JBH actually experiencing an acceleration in sales in FY25 to date, which was also the case in some parts of the Super Retail business, whereas other retailers such as Harvey Norman (HVN) have struggled.
While we sold JBH too early (~$75), we’re not afraid to re-enter if given another chance – ego doesn’t add value to portfolios!
- We may well buy back into JBH if the opportunity presents itself in the future, as earnings certainty currently trumps valuation.
MM is neutral toward JBH above $80
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