3 E Commerce Retail Stocks With Strong Growth and Thin Margins

The closure of 112-year-old Geo Jones and Bros in Bristol is a clear reminder that e-commerce pressure on traditional retail is not theoretical any more. It is already changing high streets, jobs and real estate use. For investors, that shift can create both opportunity and risk as spending moves online and physical retailers reassess their models. This article looks at 3 e-commerce retailers from the screener that are directly exposed to this trend and could see their business models tested further by it. The aim is to help you decide whether these stocks deserve closer attention or a wider berth.

Skinkandy (ASX:SK1)

Overview: Skinkandy is a specialty retailer that sells body jewelry and offers professional piercing services across Australia and New Zealand through a mix of retail stores and an online store. Its range spans flatbacks, earrings, hoops, segment rings and navel jewelry made from materials such as 14K solid gold, implant grade titanium and surgical steel.

Operations: Skinkandy generates A$80.9 million in revenue from piercing services and jewellery retail sales.

Market Cap: A$307.1 million

Skinkandy sits directly in the path of spending moving online, yet still offers a service led, in store experience that cannot simply be replicated by an e-commerce giant. Earnings growth has been strong over both the past year and the last five years, and analysts expect earnings to grow faster than the wider Australian market in the coming years. The stock trades at a large discount to one estimated fair value while also carrying a very high P/E multiple. This points to contrasting signals that careful investors will want to unpack. High returns on equity and recent board and governance upgrades add to the appeal, but you still need to weigh these against the higher financial risk linked to external borrowing.

Skinkandy’s high P/E and discounted fair value estimate suggest the market might be misreading the story. Get the context from the DCF valuation analysis for Skinkandy and see what the strong earnings track record could be masking.

Kits Eyecare (TSX:KITS)

Overview: Kits Eyecare runs a digital eyecare platform across the United States and Canada, selling contact lenses, eyeglasses and frames under its KITS brand and other labels through sites such as KITS.com and KITS.ca. The company focuses on making prescription eyewear purchases quick, price transparent and entirely online for customers who no longer want to rely on traditional optical stores.

Operations: Kits Eyecare generates about CA$213.3 million in revenue from the sale of eyewear products, with CA$138.3 million from the United States and CA$75.1 million from Canada and other markets.

Market Cap: CA$443.3 million

Kits Eyecare sits squarely in the sweet spot of the e-commerce shift highlighted by the Geo Jones closure, offering lower overhead online distribution in a category where customers are increasingly starting their search on the web. The company already serves a growing base of repeat buyers and reported Q1 2026 sales of CA$57.47 million with positive net income, yet profits remain thin and the stock trades on a very high P/E multiple, which raises questions about how much good news is already priced in. With competitors stepping back where they cannot match its direct model and management authorising a buyback of up to 5% of shares, Kits Eyecare provides a live case study in whether an online specialist with rapid expansion can justify a premium valuation or if execution and funding risks will emerge first.

Kits Eyecare’s high P/E, growing repeat customer base, and fresh Q1 2026 profit suggest the story is still forming. Get the full context in the analysis report for Kits Eyecare and see what the headline numbers might be missing.

Temple & Webster Group (ASX:TPW)

Overview: Temple & Webster Group is an Australian online retailer that sells furniture, homewares and home improvement products through its website, while also offering procurement, styling, delivery and installation services to make furnishing a home a largely digital experience.

Operations: Temple & Webster Group generates about A$662.9 million in revenue from the sale of furniture, homewares and home improvement products, all from Australia.

Market Cap: A$646.8 million

Temple & Webster Group sits in the slipstream of consumers moving online for home improvement, as highlighted by the Geo Jones closure. It has a pure online model and an asset light dropship approach that keeps it flexible but also exposes it to supply chain and margin pressure. Earnings growth has been strong, revenue is expected to grow faster than the Australian market and the stock trades below one fair value estimate. However, the very high P/E and thin 1.2% net margins mean expectations are already demanding. Adding in recent index removal, an active buyback and a crowded competitive field results in a stock where the upside story is compelling but far from risk free.

Temple & Webster Group’s high P/E, asset light model and thin margins hint at a story the headline metrics do not fully explain. See how the analyst forecasts for Temple & Webster Group reframes that tight margin profile and why one small shift could matter.

The three e-commerce retailers in this article are only a starting point. The full screener of leading online-focused stocks surfaced 36 more companies with equally compelling stories across digital retail. Unlock the rest of that opportunity set and identify the catalysts that matter most to you by using the E-commerce Retailers screener to filter for market value, financial health and the specific narratives that fit your highest conviction ideas.

Take Control of Your Investment Journey

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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