Retail Turnover Statistics Unveiling Favourable Prospects for Discretionary Space

This report is an updated version of the report published on 30 October 2023 at 3:41 PM AEDT.

Company Overview: Accent Group Limited (ASX: AX1) is into footwear, apparel, and accessories retail & distribution business. It has nearly 607 stores across 28 retail brands and owns exclusive distribution rights for 18 international brands across Australia and New Zealand. Universal Store Holdings Limited (ASX: UNI) is an Australia-based retailer specialized in casual men’s and women’s fashion, shoes, accessories, lifestyle, and gifting. It operates through two segments: Universal Store and CTC. The CTC segment is engaged in the design, wholesaling and retailing of casual youth fashion apparel. Kalkine’s Market Event Report covers the Investment Summary, Event Summary, Data Insights & Analysis, Key Financial Metrics, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Investment Summary

Event Highlights

Data Insights and Analysis

Key Drivers versus Key Challenges

According to the Retail Trade data, two ASX stocks have been identified to showcase the momentum.

(1) Accent Group Limited (ASX: AX1)

(Recommendation: ‘Speculative Buy’ at AUD 1.860, Potential Upside: Low Double-Digit)

(M-cap: AUD 1.02bn; Annual Dividend Yield: 9.61%)

The stock has witnessed a decline of ~5.64% in last one month, and over the last six months, it dipped by ~27.56%. The stock has a 52-week low and 52-week high of AUD 1.465 and AUD 2.620, respectively and is currently trading below the 52-week high-low average. AX1 was last covered in a report dated ’25 August 2023’.

(2) Universal Store Holdings Limited (ASX: UNI)

(Recommendation: ‘Speculative Buy’ at AUD 3.330; Potential Upside: Low Double-Digit)

(M-cap: AUD 252.41mn; Annual Dividend Yield: 6.95%^)

The stock has witnessed a dip of ~29.57% in last six month, and over the last one year, it edged down by ~33.53%. The stock has a 52-week low and 52-week high of AUD 2.450 and AUD 6.190, respectively and is currently trading below the 52-week high-low average. UNI was last covered in a report dated ’22 September 2023’.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 30 October 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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