The Premier Investments Limited (ASX: PMV) share price is up after the company released its FY23 result.
Premier Investments is the business behind Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans, Dotti and more.
FY23 result
Here are some of the highlights from the 12 months to 29 July 2o23:
- Premier retail sales rose 9.7% to $1.64 billion
- Retail EBIT (EBIT explained) rose 1.5% to $357.9 million
- Underlying retail EBIT (excluding significant items) grew 6.4% to $356.5 million
- Underlying net profit after tax (NPAT) increased 6.4% to $278.6 million
- Statutory net profit generated of $271.1 million
- Final dividend of $0.60 per share, up 11.1%
- Annual dividend of $1.30 per share, up 4%
Despite the business reporting ongoing strong results in the last few years, it was able to report record sales for Peter Alexander (up 11.8% to $478.9 million), Smiggle (up 22.4% to $319.8 million) and apparel brands (up 4.6% to $844.8 million).
Smiggle benefited from schools staying open after COVID-19, and it has seen success from collaborations with Harry Potter, Minecraft, Disney’s Mickey and Minnie, the AFL and Matildas.
All six new stores that opened during FY23 have “traded significantly ahead of expectations.”
One of the company’s highlights was that an agreement has been reached with a key wholesale partner to open up freestanding Smiggle stores in UAE, Qatar, Kuwait, Oman and Bahrain, in addition to the current ‘store-in-store’ arrangements.
Premier retail online sales were $324.7 million in FY23, and FY23 second half sales were up 6.3% on the FY22 second half. The online channel “continues to deliver significantly higher EBIT margin” than the retail store channel.
Capital and balance sheet highlights
The company noted it finished FY23 with cash of $417.6 million.
At the end of FY23, its investment in Breville Group Ltd (ASX: BRG) had a market value of $829 million and the investment in Myer Holdings Ltd (ASX: MYR) had a market value of $137.7 million, and it bought another 3% of Myer after the year end.
It also said that there is a strategic review underway that will “assist in assessing the optimal future structure for the group to ensure it is best positioned to maximise growth opportunities for the group’s portfolio of iconic brands.”
Final thoughts on the Premier Investments share price
The business has done very well, it’s impressive to see that retail sales did so well despite the trickier trading conditions.
Global growth looks very promising for both Smiggle and Peter Alexander. I think it’s one of the strongest retailers on the ASX.
I don’t know what’s going to happen over the next 12 months, but I believe that if there were a decline of the Premier Investments share price, it’d be an appealing opportunity.
