Premier Investments Limited FY24 Financial Results Overview
PMV (PMV) Share Update September 2024 Tuesday 24th
Premier Investments Announces Mixed FY24 Results Amid Challenging Retail Environment
Premier Investments Limited (ASX: PMV) has released its financial results for the fiscal year 2024, showcasing a mixed performance amid a challenging retail environment.
Instant Summary:
- Statutory NPAT: $257.9 million, down 4.85% vs FY23.
- Record final ordinary dividend: 70 cps, up 10 cps from FY23.
- Premier Retail EBIT: $340.9 million (post AASB16), down 8.6% vs FY23.
- Sales: $1,595.3 million, down 2.9% vs FY23.
- Peter Alexander sales: $508.6 million, up 6.2% vs FY23.
- Smiggle sales: $296 million, down 7.4% vs FY23.
- Apparel Brands sales: $790.7 million, down 6.4% vs FY23.
- Online sales: $315.3 million, down 2.9% vs FY23.
Financial Performance
Premier Investments reported a statutory net profit after tax (NPAT) of $257.9 million for FY24, a decrease of 4.85% compared to FY23. Despite the decline in NPAT, the company declared a record final ordinary dividend of 70 cents per share, fully franked, which is an increase of 10 cents from the previous year.
Premier Retail, the company's retail division, posted an EBIT of $340.9 million (post AASB16), representing a decrease of 8.6% from FY23. The division's sales totaled $1,595.3 million, down 2.9% from the previous year but up 25.5% compared to pre-COVID FY19 levels.
Segment Performance
Peter Alexander, one of Premier's key brands, achieved record sales of $508.6 million, reflecting a 6.2% increase from FY23 and a remarkable 105.3% growth from FY19. The brand's success was driven by strong performance across all product categories and both retail and online channels.
Smiggle, another significant brand, faced challenges with sales declining by 7.4% to $296 million compared to FY23. The brand's performance was impacted by increased cost of living pressures in global markets.
The Apparel Brands segment, which includes Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E, reported sales of $790.7 million, down 6.4% from FY23. However, the segment showed signs of improvement in the second half of FY24, with better sales momentum and gross margins.
Online and Omni-Channel Strategy
Premier's online sales amounted to $315.3 million, representing 19.8% of total sales for FY24. Although online sales were down 2.9% from FY23, they have grown by 112.8% since FY19. The company continues to invest in its online and omni-channel capabilities to enhance customer experience and drive growth.
Strategic Initiatives
Premier Investments has identified several growth opportunities for its brands. Peter Alexander plans to expand its presence in existing markets and launch in the United Kingdom in 1H25. Smiggle aims to grow through proprietary store expansion and evolving its wholesale model. The Apparel Brands segment is set to launch a new loyalty program and unveil new store design formats in 1H25.
The mixed financial performance of Premier Investments reflects the broader challenges faced by the retail sector, including increased cost of living pressures and changing consumer behavior. The decline in NPAT and EBIT may weigh on investor sentiment, but the increase in dividends and strong performance of key brands like Peter Alexander could provide some support to the stock price.
Investor Reaction:
Analysts are likely to have a mixed reaction to Premier Investments' FY24 results. The decline in NPAT and EBIT may raise concerns, but the company's strategic initiatives and strong performance of certain brands could be seen as positive signs for future growth.
Conclusion:
Investors should closely monitor Premier Investments' strategic initiatives and their impact on the company's financial performance. The upcoming launch of Peter Alexander in the UK and the new loyalty program for Apparel Brands could be key drivers of growth. Staying informed on the company's developments will be crucial for making informed investment decisions.