SUL vs. PMV?
I heard commentators say sell SUL and buy PMV as a better option in the Consumer Discretionary sector. What do you think? Is SUL still the best option in this sector.
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Answer
Hi Roger,
Firstly the 2 retailers’ performance in 2024 has been very different with PMV up+7.2% and SUL down -12.8%. The commentary we think is backward looking, rather than factoring in the relative risk/reward on offer currently. We prefer SUL vs PMV at today’s prices.
- PMV operates Peter Alexander, children’s stationery brand Smiggle, denim brands Just Jeans and Jay Jays, and women’s apparel brands Dotti, Jacqui E and Portmans. Investments held by PMV include shareholdings in Breville Group (BRG) and Myer Holdings (MYR).
- While SUL operates BCF a retailer of boating, camping and fishing, Macpac a technical outdoor apparel and equipment brand, Rebel a sporting goods and accessories retailer and Super Cheap Auto.
Both stocks are discretionary retailers, but we believe market expectations around SUL’s earnings are too negative. The main driver of share prices are earnings revisions, and we think SUL has a better chance of revising earnings higher relative to market expectations than PMV. We hold SUL in our Active Income Portfolio.
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Super Retail (SUL) v Premier Investments (PMV)
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Super Retail (SUL) v Premier Investments (PMV)
