Premier Investments Limited (ASX: PMV) released its 2018 financial results to the market today revealing a 9.2% rise in underlying net profit.

Premier Investments is a retail business with brands such as Peter Alexander and Smiggle. It also has investments in Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

Premier Investments Result:

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Here are some of the highlights from its result:

  • Retail sales grew by 8.2% to $1.18 billion
  • Retail underlying EBIT went up by 10.3% to $150.1 million
  • Group underlying net profit grew by 9.2% to $160.3 million
  • Total dividends grew by 17% to 62 cents per share

The retail result was achieved with like for like sales up by 3.3% on a constant currency basis. It achieved online sales of $112.5 million, which was 65.3% higher than FY17. Management were pleased to point out that the online sales target of $100 million was achieved two years early.

Premier Chairman Solomon Lew said: “This year’s result was driven by the continued growth of Smiggle and Peter Alexander as well as positive momentum within the apparel brands.”

Outlook:

In the first five weeks of FY19, global sales were up 10.2% and it also achieved a higher gross margin compared to last year.

Premier Investments is now targeting $450 million global Smiggle retail sales by FY20 and $250 million of annual sales for Peter Alexander.

The Premier Investments share price is unmoved in morning trade according to Google Finance.

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