European retailers that are earning you money
European retailers have been under pressure so far this year for various reasons. The terrorist attacks, uncertainty on global growth and slowdown in emerging markets are a few of the catalysts which contributed to a weaker sectorial performance when compared to the market. The Stoxx Europe 600 Retail Price Index is down nine per cent year-to-date.
However, despite the headwinds faced by European retailer, there are a number of companies within the sector which are outperforming not only the sector but also the market.
On September 8, European Central Bank boss Mario Draghi will address the good and bad of the European economy and what the ECB will be doing given the report on the European economy.
We expect the ECB to announce additional Quantitative Easing measures (QE) given the recent developments in the European Region (namely Brexit). For this reason we retailer stocks (especially in Europe) to maintain positive momentum as we move closer to the meeting.
Below are five stocks in the European retail industry which have performed very well this year:
WM Morrison Supermarkets (MRW LN EQUITY, 33% up YTD)
Wm Morrison Supermarkets PLC retails groceries through a chain of supermarkets and an online home delivery service in England. The Company offers food and groceries, much of which it sources and processes through fully own manufacturing facilities.
Jeronimo Martins (JMT LN EQUITY, 21% up YTD)
Jeronimo Martins, SGPS, S.A. is a holding company. The Company, through subsidiaries, distributes food in Portugal, Poland, and Colombia. The Company operates supermarkets and cash and carry stores in Portugal, as well as retail stores in Poland and Colombia. Jeronimo Martins also manufactures various food products, as well as provides services to the restaurant industry.
Kesko OYJ (KESBV FH EQUITY, 21% up YTD)
Kesko Oyj, through subsidiaries, operates wholesale and retail stores. The Company provides trading sector services such as hardware and builders' supplies building and home improvement trade, interior decoration and home goods, delivery sales and wholesale services, an animal feeds, chemicals and machinery, import and market of passenger cars and commercial vehicles, and sporting goods.
Kingfisher Plc (KGF LN EQUITY, 13% up YTD)
Kingfisher plc is an international home improvement company that operates in stores and online across Europe.
Tesco Plc (TSCO LN EQUITY, 11% up YTD)
Tesco PLC, through its subsidiaries, operates as a food retailer. The Company offers online retailing, brick and mortar supermarkets, and a private-label brand of products. Tesco provides its services primarily throughout Europe, with additional activities in Asia and the Americas.
This article was issued by Kristian Camenzuli, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.