Share Increase Goes Through The Roof for Specialty Fashion Group

Specialty Fashion Group Ltd [ASX:SFH] see’s further retails success, with a recent share value increase of 28.89%.

With their value slowly dropping throughout most of 2017 after a good start to the year, it clearly didn’t leave a negative impact for the business.

With a 28.5 cent value in shares, their overall increase is positive but nowhere near to what they were sitting at a year ago. If everything keeps going steady, they may bounce back to last year’s status.

SFH’s market cap remains at $55.748 million, with an enterprise value of $64.03 million.

What did Speciality Fashion do to cause the increase?

With the launch of Amazon Australia back in December 2017, many retailer groups were put on edge.

The launch of the Aussie online store was massive. Thousands of shoppers were visiting the e-store on launch day. However, certain market trends indicate that this did not affect Speciality Fashion, in fact it seemed like they were preparing for it to happen.

Strategic moves were made in order to save their retail success and prevent any threats from impacting the company’s livelihood.

With Toll creating a $160 million dollar e-commerce warehouse, many Aussie retailers took wind of this occurrence and decided to capitalise quickly.

SFH became one of the tenants and uses at least 40% of the warehouse space.

The warehouse offers services that can deliver to customer’s homes or stores, allowing flexibility to the customer with just a click of a button.

Research indicates that SFH closed at least 300 stores. This helps save money, as they no longer need to budget expenses and try to balance assets amongst the variety.

Can they hold their ground in the future?

Facts indicate that SFH seem to be going through steps to ensure they have a stable online platform. They possibly wish to continue the transition as they may want to do most of their sales online.

They have upped their game before Amazons release, which was smart, proving to work in their favour.

Survive and thrive plays a factor in their future movement, with a competitor retailor influx taking place in Australia. Research shows that SFH wish to hold onto their success and always stay ahead of the competition.

Adapting to the times and taking advantage of new tech innovations is working in their favour, so as long as they stick to their guns, then SFH should be right as rain.


Ryan Dinse,
Publisher, Money Morning

PS: Speciality Fashion are only one of many businesses who are up on the rise. However, the market offers more opportunity. Kris Sayce from Money Morning has constructed a free report titled ‘The Three Best Investments in Australia for 2018 and Beyond’ which outlines what the three best investments on 2018 are.


Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

Ryan's premium publications include:

Money Morning Australia