Online shopping club/business TPW focuses on lifestyle and homeware products, with the company performing strongly over the last two years, resulting in the $2.3bn retailer entering the ASX200 in March. This month, the online retailer announced that revenue growth was up +18% vs the 2H, and up 23% since March 1st, with earnings expected to be at the top end of guidance. This has been a rare winner from the tariff ructions, with the online retailer saying the US-China trade dispute has been good for business so far, reducing shipping costs while the prospect of lower rates and government stimulus around housing has helped.
TPW’s product range is providing some protection against a potential threat from Amazon, but it could eventually become a victim of its own success as rivals enviously consider how well it’s kicking goals. We really like TPW, but it’s very expensive for after it’s great run.
- We are fans of TPW, but it looks more than fully valued as it approaches the $20 area.
MM is neutral towards TPW around $20
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