Premier doles out the cash

Retail giant lifts dividend by 35pc to record high

PREMIER Investments, the fashion empire controlled by Solomon Lew and whose chains include Just Jeans, Peter Alexander and Smiggle, will shower shareholders with a strengthened and record interim dividend payout despite the shackles of store lockdowns sinking the company’s profit by 13 per cent.

Its access to quality clothing and a pullback in promotional and discounting in the market helped the retailer preserve its profit margins, while the continued growth in its online business bolstered profitability.

Mr Lew described the last six months as “one of the most challenging and unpredictable halves of the pandemic” as his fashion, apparel and stationery stores manoeuvred through government mandates that saw stores in its largest markets shut for most of the first quarter, equating to 42,675 trading days during the period.

Then having survived that, the company – like all retailers – was hit in the final two months of the first half period with the outbreak of the Covid-19 Omicron variant.

However, early signs of a recovery have become apparent with Premier Investments reporting that the second half had opened strongly, with its retail arm showing total global sales for the first five weeks up 6.2 per cent on the second half of 2021.

On Friday, the company reported a 13 per cent slide in net profit to $163.64m for the 26 weeks to January 29. The first half of 2021 was a 27-week reporting period.

“Despite these challenges, Premier has once again delivered outstanding results, reflecting the high calibre of our board, our talented senior management team, and the commitment and dedication of our team members across the globe,” Mr Lew said.

Revenue for the half was only slightly down, falling 1.9 per cent to $770.3m.

But the company will draw from its huge cash reserves of $468.6m at the end of the second half and strong balance sheet to lift its interim dividend 35 per cent to a record high of 46c per share. Shareholders will be paid on July 27.

Sales for Premier Retail, the core retail arm of Premier Investments, rose 0.6 per cent to $769.9m with online sales – a strength of Mr Lew’s retail empire – up 27.3 per cent to $195.4m. The online business contributed 25.4 per cent of total group sales.

The company’s portfolio of five fashion and apparel brands, which also includes Jay Jays, Portmans, Dotti and Jacqui E, saw total sales fall just over 6 per cent, although Portmans posted record first-half sales of $73.1m, up 16.4 per cent.

Like-for-like sales growth for the apparel brands of 5.3 per cent was stronger than overall sales growth, with sales at Jay Jays, Just Jeans and Jacqui E falling 6 per cent over the first half to $396.2m

“We are delighted with the strong result which was achieved despite the volatile trading environment,” said Premier Retail CEO Richard Murray.