Shares in online retail stocks plunged further from their pandemic-fuelled highs, and UBS warned there’s more pain to come for the sector.
Harvey Norman plunged 6.6 per cent to $3.55, TempleWebster fell 5.9 per cent to $3.20, Adore Beauty fell 2.4 per cent to $1.03, and Kogan fell 3.5 per cent to $2.80.
“E-commerce valuations appear cheap; however, we give little weight to revenue multiples given significant medium-term earnings uncertainty and downside risk to consensus earnings expectations,” Mr Piper said.in the US as a warning of what could be on the horizon for the local sector. Given inflation has also accelerated earlier and harder in the US the broker noted some worrying signs for Australian retailers.
“What is now clear, based on the significant increase in returns rates that we have seen, is that this inflationary pressure is increasingly impacting our customers shopping behaviour,” said chief executive Mat Dunn.The worries about surging price inflation pushed gold miners higher as investors piled into the safe-haven commodity.