Consumer Discretionary

While RCG Corp was conservative in its outlook at the AGM, brokers suspect that, after a strong Christmas season, robust sales growth will continue for the footwear retailer.

Brokers welcome expansion in Germany and a guidance upgrade and contemplate value at such a high multiple for Domino’s Pizza.

Dick Smith’s large inventory problem has spooked the electronics retailing segment ahead of the all-important Christmas trading period.

Aged care market sound; Dick Smith’s problem inventory; Housing outlook robust; Inbound tourism on the rise; El Nino impacting electricity pricing.

KFC franchisee Collins Foods delivered a strong first half result with brokers confident it will continue to expand its footprint with the fast food chain.

Billabong has signalled investors will need to be patient as it continues to turn its business around. Brokers remain confident but expect the strategy will take some time.

Brokers contend a2 Milk is surpassing reality while upside remains for another high flyer, Blackmores.

Collins Foods has a track record in generating cash from its KFC franchise and, in uncertain times, this is gold, Canaccord Genuity believes.

Myer enjoyed reasonable sales growth in the first quarter, its strongest in five years. While encouraged, several brokers remain unconvinced.

Footwear distributor and retailer, RCG Corp, is poised for growth given consumer trends. Moelis initiates coverage of the stock.