Premier Investments Limited

PMV Details
Expecting an increase in sales for first half 2017: Premier Investments Limited (ASX: PMV)recently announced that total sales for the first half 2017 is estimated to be around $588.6 million, an increase of 7.1% over a year-ago period (1H16 on a 26 week vs 26 week basis). Meanwhile, underlying first half EBIT is likely to see an increase of 9.4% to 10.6% (expected to be between $92.0 million and $93.0 million), thereby making it a record level EBIT for PMV. Detailed 1H17 results are due for release on March 21, 2017.  Premier Investments Limited’s subsidiary, The Just Group, recently appointed John Bryce for the role of Chief Financial Officer (CFO) and Director.  Although the Australian retails bounced back in January 2017 after a slack of two months, the underlying retail sector pulse still indicates a sluggish household consumption. Given that the stock is trading at a slightly high level (even with a 14.12% fall in last six months as at March 10, 2017) and concerns prevail over the Australian retail industry, we rate the stock "Expensive" at the current share price of – $ 13.70

 
PMV Daily Chart (Source: Thomson Reuters) 

The Reject Shop Limited

TRS Details
Weak financials and high valuations: The Reject Shop Limited (ASX: TRS)has been reported to open its new store in Toowoomba with a huge range of household products, including homeware, kitchenware, hardware, pet care, household cleaning products, toiletries and cosmetics. Despite such on-going efforts, TRS had reported that the net profit dropped 4.4% to $17.5 million led by weak consumer sentiment pulling down same store sales (-0.5%) for the first half of 2017.
 

Financial Summary (Source: Company Reports)
 
Total sales were up 2% to $432.9 million. The company Chief Executive, Ross Sudano had commented that the discount variety retailer was particularly challenged in Western Australia, while continued underemployment and declining housing prices contributed to negative same-store sales. Additionally, Eastern Seaboard sales were flat. We give an “Expensive” recommendation on the stock at the current share price of - $ 8.17

 
TRSDaily Chart (Source: Thomson Reuters) 

Nick Scali Limited

NCKDetails
Growing customer base and new product categories: Nick Scali Limited (ASX: NCK) recorded sales of $118.4 million, an increase of 15.5% from the same period a year ago, while net margin expanded 200 basis points to 62.0%. Net profit after tax was higher by 44.7% to $20.5 million with three new stores opened during the first half. Interim dividend recorded a significant surge to 14 cents per share fully franked as compared to 9 cents per share in year ago period. Looking ahead, the company is likely to open 2-3 new stores in second half 2017. Operating expenses also decreased as a percentage of sales to 36.4% at the back of efforts on control of costs and seeking efficiencies. NCK also reported that the four-week trading period in January 2017 witnessed continued double digit growth in both total sales orders and comparative stores sales orders compared with the previous corresponding period. Second half of 2017 is also expected to be favourable in terms of trading. In the past three months, Nick Scali stock has recorded a 22.8% growth in last three months (as of March 10, 2017) and the stock now trades close to its 52-week high price. Trading at a high level, we give an "Expensive" recommendation on the stock at the current share price of - $ 7.45

 
NCK Daily Chart (Source: Thomson Reuters) 

JB Hi-Fi Limited

JBHDetails
Acquisitions and growing profit levels: JB Hi-Fi Limited (ASX: JBH) recorded a total sales growth of 23.6% to $2.61 billion in its first half 2017 as compared to the year ago period. Underlying net profit after tax stood at $125.4 million higher by 31.7% while underlying earnings per share expanded 22.4% to 116.3 cents per share. Also, dividends were higher by 14.3% to 72 cents per share.
 

JBH Australia Performance Summary (Source: Company Reports)
 
In Australia, the total sales grew by 11.7% while New Zealand witnessed a 1.7% drop owing to impact from third party prepaid content cards. During the first half, JBH successfully finished the $870 million acquisition of The Good Guys, while two new JB Hi-Fi stores are expected to be opened in the second half of the year in Australia. In the past one month, JBH recorded a 10.01% drop in its share price (as of March 10, 2017). We give a “HOLD” recommendation at the current share price of – $ 25.34

 
JBH Daily Chart (Source: Thomson Reuters)

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