Consumer Discretionary

Retailer Kathmandu had a tough first half, with clearances affecting its sales margins. Brokers are divided about how quickly the company can turn around.

Brokers believe Premier Investments boasts a solid suite of fashion brands but the main catalyst in the outlook is the expansion of Smiggle UK.

A disappointing result provokes broker debate as to whether a struggling Myer may need to raise capital.

Myer has chosen an awkward time to replace its CEO, just two weeks out from the first half results, and brokers are very cautious. An equity raising may be nigh.

Household goods retailer Harvey Norman is riding high on the wave of the housing recovery in Australia. Brokers expect this will continue.

JB Hi-Fi flagged strong January trading but broker opinions vary as to whether the activity is sustainable.

Michael Gable of Fairmont Equities sees a pullback in JB Hi-Fi’s share price as a buying opportunity.

Australian retailers improve online presence; tobacco excise clouds grocery growth; challenges remain for key retailers; and petrol price fall positive but impact on sentiment limited.

Credit Suisse adds to top picks; TV advertising subdued while online continues to grow; Xmas trade better than expected; issues for some retail stocks; and A-REITs still attractive for Morgan Stanley.

The Chartist is bullish Wesfarmers although a little patience may be required.