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.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.