Premier Retail delivers profitable half with record sales

Premier Investments Limited today released its first half results for the year. The company reported an NPAT of $174.3 million, up 6.5 percent on 1H22 and up 75 percent on ‘pre-COVID’ 1H20. Global sales reached $905.2 million, up 17.6 percent on 1H22 and up 23.7 percent on 1H20.

Premier’s Chairman, Mr Solomon Lew, said: “Our teams have executed strongly to support the delivery of record results in an uncertain economic environment. Pleasingly, Premier’s statutory NPAT of $174.3 million is up 75 percent on pre-pandemic 1H20. We are delighted to continue our track record of strong returns for our shareholders, approving record interim ordinary and special dividends for the half of 70 cents per share.

“Over the past three years and including the 1H23 dividends, Premier shareholders have been rewarded with a total of half a billion dollars in fully franked dividends. Premier Retail EBIT is up 74.8 percent on 1H20. Today, Premier Retail is uniquely positioned to continue to deliver with our brands identifying key growth paths for the future, whilst leveraging synergies within the Group’s global operations.”

Premier’s golden child, Peter Alexander had record breaking sales of $261.7 million, up 15.1 percent on 1H22 and up 80.7 percent on 1H20, and has more than doubled its sales over the past four years. Peter Alexander had four new stores open this half which all traded significantly ahead of expectations. The record sales result was driven by ‘exceptional performance across all product categories’ according to the company.  Peter Alexander has a runway for further growth, having identified 20 – 30 opportunities for both new and/or larger format stores, future offshore market opportunities – including a partnership agreement with a global cross border ecommerce platform provider to grow Peter Alexander internationally across 35 countries to be launched in 1H24.

Smiggle delivered global sales of $190.7 million in 1H23 for Premier, up 30.3 percent on 1H22 as stationary supply demand returned, and in addition to adding more stores to its 800 door strong footprint, the company detailed plans to pursue further wholesale door opportunities in existing markets with existing wholesale partners.

Of Premier’s apparel brands, Just Jeans, Portmans and Dotti all delivered record first half results, Jacqui E delivered its highest first half sales result in over a decade, and Jay Jays delivered its second best first half sales result in the past decade. The brands collectively delivered record sales for the half of $452.8 million, an increase of 14.3 percent on 1H22 and with 26 less stores, was up 15.1 percent on 1H20.

Online sales for Premier saw a 12.5 drop on last year, at $170.9 million, however this is still up 75.8 percent on pre-COVID 1H20.

The company delivered an interim fully franked ordinary dividend of 54 cps, and a special fully franked dividend of 16 cps, taking total fully franked interim dividends to 70 cps, up 52.2 percent on 1H22 and up 105.9 percent on 1H20 – to be be payable together on 26 July, with a record date of 21 June.

The report also records a 1H23 closing cash on hand of $470.4 million after having distributed $125.8 million in fully franked dividends to shareholders over the past 6 months.

The company concludes its report stating Premier Retail is uniquely positioned to continue to deliver with the brands identifying key growth paths for the future, whilst leveraging synergies within the Group’s global operations. The second half of FY23 has opened strongly with total global sales for the first 6 weeks up 7.7 percent on 2H22.

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