Premier Investments (PMV) H1 2025 earnings summary

Executive summary

• Completed sale of Apparel Brands (Just Group) to Myer Holdings Limited post-1H25, streamlining focus to Peter Alexander and Smiggle and ending Premier's interest in Myer shares.

• In-specie distribution of $1.03 billion in Myer shares and $387.1 million in franking credits to shareholders.

• Statutory NPAT for 1H25 was $117.1 million, including all seven retail brands and significant one-off expenses from the Apparel Brands sale.

• No interim dividend declared for 1H25 due to the substantial distribution; dividend expected to resume at FY25 results.

• Focus now on high-margin brands Peter Alexander and Smiggle, with ongoing investment in Breville and strategic property holdings.

Financial highlights

• Statutory NPAT: $117.1 million, down 34.0% vs 1H24, impacted by significant transaction costs.

• Premier Retail EBIT (continuing): $129.4 million, down 16.0% vs 1H24; EBIT margin 28.4%.

• Sales (continuing): $455.0 million, down 1.8% vs 1H24; gross margin 67.8%.

• Peter Alexander sales: $297.7 million, up 6.6% vs 1H24; Smiggle sales: $157.3 million, down 14.5% vs 1H24.

• Operating cash flow: $223.4 million (down from $271.3 million year-over-year).

Outlook and guidance

• Focus on growth for Peter Alexander and Smiggle, with identified opportunities for new and expanded stores in Australia, New Zealand, and the UK.

• Peter Alexander loyalty program to launch in CY25; Smiggle reviewing loyalty program and customer research.

• Smiggle targeting over 10 new stores in proprietary markets and exploring further wholesale and international opportunities.

• Board expects to return to dividend payments at FY25 results.