The operator of speciality retail and fashion chains across the globe, Premier Investments [ASX:PMV] has managed to hit record sales and earnings, increasing profit and dividends in the first six months of fiscal 2023.
Worldwide sales had gone up by 17.6% on the same time last year, totalling $905.2 million, while net profit after tax came to $174.3 million, a jump of 6.5%.
PMV’s share price was trading for around $25.33 at the time of writing.
It had inched up very little despite its good news this morning, remaining down by 11% in the past 12 months and more than 7% down in the last month alone:
Source: tradingview.com
Premier’s record returns for 1H FY2023
Today the company has reported a new record for global sales of $905.2 million, an increase of 17.6% on the same time last year.
This led to a 6.5% increase in net profit after tax across the same timeline — totalling $174.3 million.
Online sales had tracked in $170.9 million, 12.5% lower on the first half of FY2022, as more customers returned to physical shopping.
Premier’s retail EBIT (earnings before interest and tax) brought in $221.8 million, an increase of 4.6%.
Compared with the first half of fiscal 2020, before implications of the pandemic crept in to cripple business, the group reported a 23.7% increase in retail sales, a 75.8% increase in online sales and a 75.9% increase in retail EBIT.
The best businesses to perform in the half-year were notably; Apparel Brands which collectively delivered record sales of $452.8 million (an increase of 14.3%), Peter Alexander, with sales of $261.7 million (up 15.1% on 1H22), and Smiggle with sales of $190.7 million (up 30% on 1H22).
The company declared record interim dividends of 70 cents a share, up 52.2% on last year.
This was made up of 54 cents fully franked interim dividends and a fully franked special dividend of 16 cents.
Solomon Lew, Premier’s Chairman, stated:
‘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.
‘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 has begun 2H23 with total sales in the first 6 weeks up 7.7% on 2H22. CEO Richard Murray, commented:
‘We have opened the second half strongly and are well-positioned to drive growth from our powerful retail model. We remain focused on continuing to deliver relevant and quality products, enhancing our digital offering, optimising our store portfolio and identifying new store opportunities to support growth. We are also focused on identifying and executing new offshore market opportunities for Smiggle and Peter Alexander.’
Source: PMV
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