Top ASX Retail Stocks for 2025: Here Are Our 5 Picks!

Here Are Our 5 Top ASX Retail Stocks for 2025!

Baby Bunting (ASX:BBN)

Baby Bunting has bottomed out from a share price perspective, and while its results are recovering, this is yet to be reflected in the company’s valuation. Shares shed 80% of their value from April 2021 to June 2023 leading to the departure of CEO Matt Spencer. The company suffered from high inflation, because of both dented margins and consumer demand (consumers went to cheaper alternatives for baby products).

However, Baby Bunting has undertaken several initiatives such as renegotiating terms with suppliers and refinancing debt. These only had a modest impact in FY24, although there are positive signs in FY25. Unaudited results for the first half of FY25 show a profit margin of 39.8%, up from 37.2% and comparable store sales growth of 2.2%. Growth was only 0.6% on the September quarter, but accelerated to 4.5% in the December quarter. The company’s profit looks to be $4.8m, 37% ahead of 12 months prior.

JB Hi-Fi (ASX:JBH)

The next two retail stocks on our list are obvious choices, there’s no shying away from that. And with a 90% share price gain in 2024, even though its results are flat, there is argument to be made that it is overvalued.

In our view, the key reason to buy this stock is an expected recovery of The Good Guys, a white goods retailer that JB Hi-Fi has owned but the decision to buy it hasn’t paid a lot of dividends as it has stagnated. But FY25 has begun positively for it and we expect it to continue. Also, its core electronics retailing business should do well. This isn’t a Nick Scali or Harvey Norman where consumers bought couches during COVID-19 that’ll last 10-20 years…electronics need updating far more often than that.

Wesfarmers (ASX:WES)

Wesfarmers’ retail assets include Bunnings, Officeworks, Kmart, Target and Priceline with the former of these being the largest. It has other assets too including the Mt Holland lithium miner, but that is for another article. Wesfarmers’ FY24 was more modest than FY23, but it fared better than most other companies while inflation was high. Analysts covering the company expect more of the same in FY25.

This retail stock is not on our list because we expect it to double or triple in 12 months, but because it is a reliable dividend payer and its assets tend to be immune to economic conditions.

Universal Store (ASX:UNI)

Universal Store is a chain of casual fashion stores aimed at Millennial and Gen Z customers. It has over 100 stores and its share price has doubled since its late 2020 listing. The stock has been an easy one to doubt because its customer base have borne the brunt of inflation more than most. But this has not stopped the company. In FY24, its sales grew 10% to $288.5m, EBIT increased by 17% to $47.1m and its profit rose 45% to $34.23m.

The company has not given specific financial guidance, but told investors to expect 4-6 Universal Store sites, 4-6 Perfect Stranger stores and 1-3 Thrills stores. It revealed that for the first 6 weeks for FY25, US sales increased 15% and Perfect Stranger Sales increased 90% (or 24% on a like for like basis).

Beacon Lighting (ASX:BLX)

Beacon Lighting (ASX:BLX) sells lights and fans to retail and trade consumers and is the largest company in its industry. Since listing, Beacon has not raised a cent in capital and is still 55% owned by the Robinson family. At the time it listed it had $11.5m in net profit and $17.2m EBITDA on sales of $150m. It had consistent 15-20% annual profit growth since 1995. Since listing there has been further expansion. Nearly a decade on, it delivered $323m in sales during FY24, $85m EBITDA and a a $30m NPAT.

Beacon has big expansion plans in the longer-term, targeting over 190 stores up from 127 now. It is hoping to expand overseas as well, exhibiting at several international trade fairs in 2025. And finally, the company hopes to expand its presence in the wholesale market (think professional electricians, builders, architects and interior designers).

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