With the U.S. Federal Reserve wanting to raise interest rates and the Canadian economy in a technical recession, stock markets on both sides of the border are shaky. This is likely weighing on the minds of the average consumer, who may already be forgoing luxury purchases. The big winner in this scenario are discount retail stores, which could include the companies on our list today.
Tuesday Morning Corp. (NASDAQ: TUES) – $7.89
Discount Stores
Tuesday Morning Corporation is a merchandiser and retailer of off-price, upscale decorative home accessories, housewares, seasonal goods and gifts that sell below retail prices charged by department stores and specialty and on-line retailers in the United States. The Company sells upscale home furnishings, housewares, gifts and other related items. Tuesday Morning’s merchandise primarily consists of home decor, furniture, bed and bath, kitchen, electrics, luggage, toys, crafts, pets, and seasonal goods.
- Market Cap: $453,674,090
- Revenue (LTM, CAD): $1,083,341,935
- Debt (LFQ, CAD): $0
- EBITDA (LTM, CAD): $28,940,410
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Coupons.com Incorporated (NYSE: COUP) – $10.35
Advertising & Marketing
Coupons.com Incorporated operates a digital promotion platform that connects brands and retailers with consumers. The Company has over 2,000 brands from approximately 700 consumer packaged goods companies (CPG). It delivers digital coupons to consumers, including coupon codes, and media and advertising through its platform, which includes its Web, mobile and social channels, as well as those of its CPGs, retailers, and its network of approximately 30,000 publishers, that display its coupon and advertising offerings on their websites.
- Market Cap: $1,128,540,624
- Revenue (LTM, CAD): $275,524,447
- Debt (LFQ, CAD): $9,368,250
- EBITDA (LTM, CAD): -$8,700,732
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Overstock com Inc. (NASDAQ: OSTK) – $19.71
Internet Services
Overstock.com, Inc. (Overstock) is an online retailer offering discount brand name, non-brand name and closeout merchandise, including furniture, home decor, bedding and bath, housewares, jewelry and watches, apparel and designer accessories, electronics and computers, and sporting goods, among other products. Overstock.com has organized its shopping business in two segments: direct business and partner business.
- Market Cap: $643,158,134
- Revenue (LTM, CAD): $1,931,679,208
- Debt (LFQ, CAD): $624,550
- EBITDA (LTM, CAD): $37,582,360
North West Company Inc. (TSX: NWC) – $27.16
Retailer
The North West Company Inc. (NWC) is a retailer to underserved rural communities and urban neighborhood markets in northern Canada, western Canada, rural Alaska, the South Pacific and the Caribbean. Its stores offer products and services with an emphasis on food. NWC operates in two segments: Canadian Operations and International Operations.
- Market Cap: $1,298,118,209
- Revenue (LTM, USD): $2,812,453,000
- Debt (LFQ, CAD): $204,971,000
- EBITDA (LTM, CAD): $142,054,000
Fred’s Inc. (NASDAQ: FRED) – $12.66
Discount Stores
Fred’s Inc. (Fred’s) is an operator of general merchandise stores. The Company operates approximately 660 discount general merchandise stores, including around 19 franchised Fred’s stores, in 15 states in the southeastern United States. Fred’s offers different product categories, including consumables, such as tobacco, food and beverage, prescription pharmaceuticals, paper and cleaning supplies, pet supplies, health and beauty aids, and discretionary products, such as home decor, seasonal merchandise, auto and hardware, and lawn and garden.
- Market Cap: $629,401,562
- Revenue (LTM, CAD): $2,512,047,719
- Debt (LFQ, CAD): $89,861,562
- EBITDA (LTM, CAD): $4,762,616
