Sectors: Consumer Goods
Most people think of Amazon as a tech business which is no surprise, but it still sold ~$US158bn worth of goods last quarter, making up more than 70% of its revenue and affording it the title of the largest retailer in the US. However, while the retail arm is enormous in revenue terms, it’s only relatively modest when looking at the contribution to overall profit.
To the MM Team,
WES –5.62: delivered a broadly solid group print, but the market focused on softer-than-hoped results from Bunnings and Kmart relative to expectations.
JBH +7.46%: A solid 1H result, with earnings in line with expectations and the business continuing to execute well in a competitive retail environment. While January trading was softer (+2.4%) and management struck a cautious tone, the market had already priced in plenty of bad news after the stock’s recent pullback.
TPW –32.63% was hit hard today after the online furniture retailer delivered a mixed 1H result. Revenue was broadly in line, showing solid growth, but the market zeroed in on weaker profitability, with gross margins falling short of expectations.
We liked HVN result in October which saw the stock surge almost 20% over a few sessions. However, the less dovish economic backdrop that’s evolved in the last 24-hours is likely to weigh further on the retail sector, especially after some of them have run hard in anticipation of a jubilant consumer enjoying interest rate cuts. Patience looks likely to pay off here with a 6-8% pullback, a strong possibility over the coming weeks.
NCK +12.7%: Shares jumped to a fresh record high after the company’s AGM and trading update today, reporting an impressive 10.7% lift in ANZ same-store sales for the first quarter, signaling a strong start to FY26. This represents acceleration from July’s 7.2% growth reported in their last update.
We don’t currently own Nike, but we think it’s one of the more interesting large-cap consumer names on the radar — a global brand with extraordinary equity, trading at a point in its cycle where sentiment is washed out and earnings remain depressed.
HVN surged higher on Friday, with gains almost eclipsed yesterday as the retailer added another +8.6%. Upgrades poured through from the likes of UBS, Citi, and Jefferies, with the former lifting the stock from a Hold to a Buy.
HVN +11.5%: soared the most since 2009 after delivering a strong FY25 profit beat, hitting all-time highs on another positive day for the ASX retailers.
