Premier Investments Limited FY24 Overview

Premier Investments Limited (ASX:PMV) has reported a challenging FY24, with sales down 2.9% on record FY23. The company's Peter Alexander brand achieved record sales surpassing half a billion dollars in FY24, marking a 6.2% increase from FY23.

Executive Commentary on FY24 Results

In a challenging general discretionary retail environment, Premier Retail's strategy focused on delivering value for customers in products and shopping experience, while maintaining a relentless focus on inventory productivity and operational efficiencies. Despite the challenging environment, the company achieved sales of $1,595.3 million, down 2.9% on record FY23 and up 25.5% on pre-COVID FY19. The gross margin improved by 35 bps on FY23, and the company maintained a clean inventory position to commence FY25. The first 7 weeks of 1H25 showed a mixed sales performance, with Australian sales up 0.2% and overall global sales down 3.5% compared to the prior comparable period.

Summary of FY24 Results and Outlook

Premier Investments (ASX:PMV) faced a challenging FY24, with a decline in sales compared to the previous year. However, the Peter Alexander brand achieved record sales, indicating strong performance in specific segments. The company's strategic focus on delivering value for customers and maintaining inventory productivity and operational efficiencies has positioned it for a clean inventory position to commence FY25. The outlook for the company includes a continued focus on key promotional periods and global sales, with opportunities for store expansion and new product offerings. Additionally, the company is exploring offshore market opportunities, including the launch of the Peter Alexander brand in the United Kingdom in 1H25. Premier Investments is also prioritizing exploring a potential combination with Myer and the value it might create for shareholders, while also considering the potential demerger of Peter Alexander and Smiggle, subject to further review and final approvals.