Best ASX Consumer Stocks to Buy in View of RBA’s Decision

RBA’s interest rate decisions can put pressure on household spending but some consumer discretionary companies are not affected. Lovisa, Universal Store and Accent Group have proved they can handle interest rate cycles because of their strong brands, focus on cost control and the loyal customers especially in the younger demographic they have built over time.

Lovisa Holdings Limited (ASX: LOV)

posted strong results for FY25. Total sales jumped 14.2% to about A$798.1 million which was driven by 162 new stores that opened across Europe, the Americas and also in new African markets. It’s comparable store sales for the year went up 1.7% and the second half showed much better momentum. Gross profit climbed 15.7% to A$654.7 million and the gross margin moved up by 100 basis points to 82.0% which is quite high for the retail sector. EBIT increased 8.2% to A$138.7 million while NPAT grew 4.8% to A$86.3 million. This result also reflects higher lease related interest expenses from its fast store roll out. Operating cash flow came strong at A$243.3 million and this supported its global expansion as well as a final unfranked dividend of 27 cents which made full year dividends 77 cents per share in total. The company’s network ended FY25 with 1,031 stores now across more than 50 markets worldwide. In early FY26 the momentum continued with comparable sales already up 5.6% and total sales up 28% in the first 8 weeks

Universal Store Holdings Limited (ASX: UNI)

had a strong FY25 with group sales going up 15.5% to A$333.3 million and underlying NPAT also rising 15.2% to A$34.8 million. Gross margin went up 100bps to 61.1% as private brand sales picked up more mainly from Perfect Stranger brand which jumped 83% to A$25.5 million. Universal Store itself did 13% like for like sales growth to A$280.9 million but the CTC portfolio saw weaker wholesale sales and that lead to a goodwill impairment of A$13.6 million. Underlying EBIT was up 15.9% to A$54.6 million which means EPS was 45.4 cents. Operating cash flow also improved 23.3% to A$98 million. The balance sheet ended with A$17.2 million cash and no borrowings giving good room for expansion ahead. Shareholders got a final dividend of 16.5 cents which took total FY25 dividends to 38.5 cents per share, up 8.5% from FY24. Early FY26 numbers also looking good with DTC sales up 17.2% in the first 7 weeks

Accent Group Limited (ASX: AX1)

posted steady results for FY25 with total sales including franchisee stores up 0.8% to A$1.62 billion. Owned sales went up 1.6% to A$1.46 billion. Retail sales increased 2.5% which helped balance weaker wholesale numbers. Like for like sales were up 0.7%. Gross margin dropped 85bps to 54.9% because of promotions but EBIT stayed flat at A$110.2 million. NPAT was down 3.1% to A$57.7 million. Operating cashflow improved thanks to cost cuts and better control of working capital. Net debt fell to A$100 million from A$122 million. Shareholders got fully franked dividends of 7.0 cents per share with a final 1.5 cents which was paid out in September. The store network finished the year with 892 stores in Australia and New Zealand after 54 new store openings. The company sees growth from new distribution deals for Skechers, HOKA and UGG plus the launch of Sports Direct stores in FY26 which should boost long term earnings. 

(Source: Company Announcements)