Premier Investments (PMV) H2 2024 earnings summary

Executive summary

• FY24 sales were $1,595.3m, down 2.9% from FY23 but up 25.5% from FY19, showing resilience in a tough retail market.

• Statutory NPAT was $257.9m; adjusted NPAT was $244.4m.

• Premier Retail EBIT (pre-AASB16) was $325.9m, down 8.6% vs FY23 but up 94.8% vs FY19.

• Record fully franked final ordinary dividend of 70 cps, up from FY23, with full-year dividend at 133 cps.

• Strategic review prioritizes potential combination of Apparel Brands with Myer and considers demergers of Peter Alexander and/or Smiggle.

Financial highlights

• Gross profit was $998.0m, down 2.4% vs FY23, with gross margin up 35bps to 62.6%.

• Online sales were $315.3m, 19.8% of total sales, flat year-over-year.

• Cash on hand at year-end was $409.5m; inventory down 5.8% to $217.9m from July 2023.

• Investments: 25.5% in Breville ($981.5m) and 31.37% in Myer ($215.3m) at year-end.

• Cost of doing business rose 1.7% on FY23, reflecting operational efficiencies.

Outlook and guidance

• Early 1H25: Australian sales up 0.2%, global sales down 3.5% for first 7 weeks.

• Peter Alexander to launch in the UK in 1H25 with 3 London stores and a dedicated website by November 2024; up to 10 UK stores identified for expansion.

• New loyalty program and store design formats for Apparel Brands to launch in October 2024.

• Clean inventory position entering FY25 positions the group well for key trading periods.

• Board prioritizing Myer proposal over demerger; demerger timing now dependent on Myer discussions.