Australian consumers have spent up on pyjamas and pencil cases to lift global retail sales at Premier Investments – the owner of Peter Alexander and Smiggle – to record levels, though there are signs that momentum has slowed in the first weeks of the new year.
The Solomon Lew-chaired retail giant revealed on Thursday morning that it had achieved record global sales across its stable of brands, after sales rose 9.7 per cent for the year to $1.64 billion.
Peter Alexander sales jumped by 11.8 per cent. Credit: Edwina Pickles
Sales at Peter Alexander jumped by 11.8 per cent to $478.9 million, while Smiggle stores posted a 22.4 per cent increase to hit $319.8 million.
Premier’s five apparel brands, which include the likes of Portmans and Just Jeans, grew sales by 4.6 per cent for the year to $844.8 million.
Earnings before interest and tax for the group’s retail brands also hit record levels: up 6.4 per cent to $356.5 million.
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Premier’s net profit after tax slipped by close to 5 per cent for the year to $271.1 million, though this was impacted by changes the company made to accounting for its investments, which include a more than 25 per cent stake in Myer.
Lew said that the results show the group’s portfolio of retail brands continue to outperform the market.
“The team remains focused on delivering quality products, enhancing our product offering and optimising the store network.”
Retail analysts had flagged prior to the earnings announcement that they would be watching closely for a trading update from the company. Premier confirmed on Thursday that, based on the first six weeks of the 2024 financial year, momentum had slowed when compared with the same time in 2023.
The group’s global sales for August and into September were down by 2 per cent on the same time last year – though Premier said it was looking forward to the Christmas trading quarter, which has a significant impact on the company’s results.
The company announced it had signed an agreement with an existing wholesale partner to open standalone Smiggle stores in United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.Credit: Edwina Pickles
Premier surprised the market in August when it revealed it was undertaking a strategic review of the business which could include the demerger of its brands into separate, standalone ASX-listed companies.
The news sparked market speculation about the global growth potential of the Smiggle and Peter Alexander brands. On Thursday, the company flagged it was continuing to look at offshore market opportunities, and had signed an agreement with an existing wholesale partner to open standalone Smiggle stores in the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain.
Investors will see a beefed up final dividend of 60¢ per share, up 11.1 per cent on last year’s final payout. The fully franked payment will be made on January 24 and pushes the total full-year payout up by 4 per cent to $1.30.
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Premier shares had declined by 1.5 per cent in the five days leading up to the company revealing its results, and closed at $24.71 on Wednesday.
More to come
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