Statistics Canada revealed a disappointing month in April for retail trade. Retail sales fell 1.2% to $49.5 billion in April with motor vehicle and parts dealers leading the decline. However, results were also concerning for building material and home furnishing stores in what is usually a busy season.
Sales at furniture and home furnishing stores were down 0.9% month-over-month in April and building equipment and garden equipment and supplies dealers saw a 3.3% drop in sales activity. A slow housing market in 2018 may be contributing to the lack of investment in these areas.
With this in mind, today we’ll look at three stocks that are still worth a look even after these disappointing numbers. All stocks come in at a good price for investors, who are gearing up for the final legs of 2018. Let’s dive in.
Sleep Country Canada Holdings Inc. (TSX: ZZZ)
Sleep Country Canada stock has dropped 8.1% over the past month as of close on July 17. Shares are down 6.4% in 2018 so far. This is after a strong showing in its first-quarter results, which were posted in early May. The company is expected to release its second-quarter results on August 3.
In the first quarter Sleep Country saw revenue rise 8.9% year-over-year to $135.3 million and adjusted net income increased 2.3% to $11 million. Sleep Country also opened three new stores in the first quarter and continued to ramp up support of its e-commerce business. The company hiked its quarterly dividend by 12% to $0.185 per share, representing a 2.1% dividend yield.
Sleep Country raised its store opening guidance for 2018 in the last quarter, and has seen impressive traffic increases on its e-commerce site. There is a good opportunity to buy into this dip for investors seeking capital growth and solid income.
Leon’s Furniture Ltd. (TSX: LNF)
Leon’s Furniture stock has dropped 1.3% in 2018 so far. Shares have been mostly flat year over year. Leon’s is expected to release its second-quarter results in early August.
In the first quarter Leon’s saw revenue rise 3.4% year-over-year to $500.7 million and adjusted net income jumped 35.1% to $11.5 million. The stock also offers a quarterly dividend of $0.12 per share, representing a 2.6% dividend yield. Leon’s has also seen strong growth in its e-commerce business and is forecasting continued revenue growth for the remainder of 2018.
Richelieu Hardware Ltd. (TSX: RCH)
Richelieu Hardware stock has dropped 9.6% month over month. Shares are down 19.6% in 2018 so far. The company released its second-quarter results on July 5.
Sales climbed 8.3% year-over-year to $263.4 million, while Richelieu maintained a strong financial position. Both Canada and the United States posted strong sales increases of 10.1% and 9.7%, respectively. Richelieu boasts debt of only $0.8 million with $10.2 million in cash and a working capital of $321.5 million.
The board of directors also approved a dividend of $0.06 per share, presenting a modest 0.8% dividend yield.
