The Premier Investments Limited (ASX: PMV) share price is up after the company announced its FY23 half-year result which included strong profit growth.
Premier Investments owns a number of retail brands including Just Jeans, Portmans, Dotti, Jay Jays and Jacqui E. The business also owns Smiggle and Peter Alexander. On top of that, it’s invested in Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).
HY23 result
Here are some of the highlights from the result:
- Premier retail’s sales increased 17.6% to $905.2 million
- Online sales only decreased by 12.5% to $170.9 million despite the end of lockdowns
- Retail EBIT (EBIT explained) grew by 4.6% to $221.8 million
- Underlying retail EBIT went up 12.2% to $220.4 million
- Statutory net profit (NPAT) grew by 6.5% to $174.3 million
It said that its apparel brand sales improved by 14.3% to $452.8 million. Peter Alexander sales grew 15.1% to $261.7 million. Smiggle sales jumped 30.3% to $190.7 million, with Smiggle sales back to pre-COVID record sales, with around 50 less stores.
Peter Alexander’s four new stores opened in the first half of FY23 were “significantly ahead of expectations”, with two new stores confirmed to open in the second half of FY23.
Growth plans
Premier Investments has identified 20 to 30 opportunities for both new and/or larger format stores in the near term to better showcase its wider product offering. It’s currently planning future offshore market opportunities where it could grow internationally to 35 countries with an e-commerce platform.
For Smiggle, the business is looking to grow its store count in existing regions by at least 30 stores in the near term, which would be an increase of 10% to 15%. It’s also pursuing further wholesale door opportunities in existing markets with existing wholesale partners.
Premier Investments also said that wholesale partners have the ability to evolve the current model to include their own Smiggle freestanding stores, which provides “material growth in key markets in the medium-term.” Smiggle is also exploring “compelling opportunities in both existing and potential new markets.”
Premier Investments dividend
The business declared an interim ordinary dividend of 54 cents per share and a special dividend of 16 cents per share. The total interim dividend of 70 cents per share was 24 cents per share bigger than last year.
Premier Investments’ ordinary dividend was increased by 17%.
My thoughts on the Premier Investments share price and outlook
The company said that FY23 second half trading has “opened strongly” with total sales in the first six weeks through February and March up 7.7% year on year.
I think the business has a very promising outlook, with plans for more growth with its main brands.
I’d be happy to buy Premier Investments shares as part of an ASX dividend shares focused portfolio.
