The Premier Investments Limited (ASX: PMV) share price looks very attractive after its FY23 first half update.
This is a business that owns a number of retail brands including Just Jeans, Jay Jays, Dotti, Smiggle and Peter Alexander.
FY23 update
The company told investors how it had performed in the first 17 weeks of the FY23 first half. It released the update on Friday before its annual general meeting (AGM).
It told investors that total global sales were up 23.6% for the 17 weeks, compared to the same period in FY22.
The first 12 weeks saw 42.8% year on year growth, while weeks 13 to 17 saw growth of 0.1%. Those last few weeks were comparing against “buoyant store re-openings post lockdown”. But, it’s pleasing to see that sales continue to be strong, there hasn’t been a drawdown.
Management said that it achieved record sales during this year’s Black Friday trading week including achieving its “highest ever global online sales for a trading week”.
The company said that it has managed its logistics program effectively and is “fully prepared” for the FY23 first half key trading period ahead.
Management believe the business is well-positioned to take full advantage of the current momentum through the remaining first half trading period of Christmas, Boxing Day and ‘back to school’.
Why I think the Premier Investments share price is too good to ignore
It’s hard to say how discretionary shops will perform in the months ahead, so who knows if the Australian-based revenue of the business can grow?
But, I do think that Smiggle has a promising outlook. Kids need school equipment like bags and so on, and they aren’t expensive purchases so I don’t think it will see much (if any) of a setback even if there is a global recession.
I like the long-term prospects of the business and I think the company is likely to make good future decisions about expansion or acquisitions. It also pays a solid dividend each year, which is a useful boost for cash returns.
