To keep reading, enter your email address or login below.
Statistics Canada released its retail trade report for October 2017 on December 21. Overall retail sales rose 1.5% to $49.9 billion in October. Sales were up in seven of 11 sub-sectors. Let’s take a look at four stocks investors should focus on after this report.
Canadian Tire Corporation Limited (TSX:CTC.A)
Canadian Tire stock has increased 17.9% in 2017 as of close on December 21. Automotive parts, accessories, and tire stores posted 1.2% growth in October, and sales at general merchandise stores were up 1.8%.
Canadian Tire released its third-quarter results on November 9. Retail segment revenue was up 5.5% to $155.8 million. Income before income taxes was up 4.3% in Q3 to $100.2 million. The company also declared a quarterly dividend of $0.90 per share, representing a 2.2% dividend yield.
The broad October retail numbers are a great early sign for Canadian Tire ahead of its fourth-quarter results that should be released in early 2018.
Indigo Books & Music Inc. (TSX:IDG)
Shares of Indigo have climbed 17.6% in a three-month span dating back to September 21. In November, I’d recommended Indigo as a great option for investors ahead of the holiday season. Indigo will typically see incredibly high activity in the holiday season.
The company released its fiscal 2018 second-quarter results for the three months ending September 30 on November 1. Revenue increased to $224.5 million compared to $216.9 million in the prior year. Gross profit also grew to $99.7 million from $97.7 million in the second quarter of fiscal 2017. Online operations fueled growth in total comparable sales, which were up 2.8% year over year.
This is a great target to scoop up before it posts its fiscal 2018 third-quarter results that will include numbers from the holiday season.
Shopify Inc. (TSX:SHOP)(NYSE:SHOP)
Shopify stock declined 1.13% on December 21. In early December, I’d discussed whether or not investors should buy into its December dip, as it hovered around the $120 mark.
Retail e-commerce sales reached $1.3 billion in the month of October, which made up 2.6% of all retail trade. Retail e-commerce climbed 19.4% year over year. Shopify merchants sold over $1 billion worth of merchandise during Black Friday and Cyber Monday.
In the third quarter, Shopify saw its revenue jump 72% compared to Q3 2016 and gross profit increase 86%. E-commerce continues to increase its overall share of retail sales, and the holiday season of 2017 should boast new records. Shopify is a buy heading into the new year.
Corby Spirit and Wine Ltd. (TSX:CSW.A)
Corby Spirit and Wine stock rose 1.16% on December 21. Retail sales at beer, wine, and liquor stores increased 3.7% in the month of October. Corby Spirit and Wine, which manufactures and distributes a number of top liquor and spirits brands, released its fiscal 2018 first-quarter results on November 8.
Financial results ending September 30 showed revenue jump 4% in the quarter. Net earnings dropped 9% year over year to $5.8 million or $0.21 per share. The company also declared a quarterly dividend of $0.22 per share, representing a 4% dividend yield.
If You Missed Investing In Microsoft in 1996 – Read This
I can’t believe so many investors haven’t heard about something Microsoft founder Bill Gates told a group of college students in 2004.
This could be your chance to get in on the ground floor!
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.