Premier Investments Limited 1H24 performance overview

Premier Investments Limited (ASX: $PMV) has reported a strong performance in the first half of 2024. Premier Retail achieved EBIT of $209.8 million, down 4.8% compared to the same period last year but up 66.4% compared to pre-COVID 1H20. The company also announced a fully franked interim ordinary dividend of 63 cps, up 9 cps from 1H23. Premier NPAT, adjusted to exclude the P&L impact of equity accounting and including dividends received, stood at $155.6 million. The company holds a 25.5% investment in BRG with a market value of $970.5 million and a 28.4% investment in MYR with a market value of $154.9 million. Premier Retail sales reached $879.5 million, marking the second-highest sales result in the group's history.

Executive commentary on 1H24 performance

Premier Retail faced a challenging retail environment in 1H24, with increased cost of living pressures for consumers. Despite this, the company's strategy focused on delivering value for customers, maintaining a relentless focus on inventory productivity, and operational efficiencies. The record sales during Black Friday and Boxing Day drove Premier Retail's sales to $879.5 million, the second-highest in the group's history. Additionally, Peter Alexander achieved record sales of $279.3 million, marking a 6.7% increase from 1H23. The brand's unique design-led product and creative marketing direction positioned it as a leading lifestyle and gifting brand. Furthermore, Smiggle, despite a challenging retail environment, delivered sales of $183.9 million in 1H24, cycling a steep rebound in 1H23.

Summary of 1H24 performance and future outlook

Premier Investments Limited's 1H24 performance reflects resilience and adaptability in a challenging retail environment. The company's strategic focus on delivering value to customers and maintaining operational efficiencies has resulted in strong sales performance, particularly for Peter Alexander and Smiggle. The company's global sales for the first 8 weeks of 2H24 are showing improving momentum, indicating a positive outlook. Peter Alexander's expansion into the United Kingdom and the identified growth opportunities for all brands demonstrate the company's ambitions for future expansion. Premier's strategic review progress, including the potential demerger of Smiggle and Peter Alexander into separate listed entities, reflects the company's commitment to maximizing growth potential. With a clean inventory position and continuous improvement in product ranges and sourcing, Premier Investments is well-positioned for future growth.