Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
Business
Derek Rose

Premier eyes global expansion after record first-half

Premier is planning to expand its Peter Alexander and Smiggle chains, after strong profit results. (Dan Himbrechts/AAP PHOTOS) (AAP)

Premier Investments is plotting an overseas expansion for its Peter Alexander and Smiggle brands after a record first half.

The company, which is also behind the Dotti, Jacqui E, Just Jeans, Jay Jays and Portmans apparel brands announced on Monday it had made a net profit after tax of $174.3 million for the 26 weeks to January 28, up 6.5 per cent from a year ago and up 75 per cent from 2020.

Sales lifted 17.6 per cent from a year ago to $905.2m, with Peter Alexander sales up 15.1 per cent to $261.7m.

Premier's five apparel brands delivered $452.8m in sales, up 14.3 per cent from a year ago, while Smiggle had sales of $190.7m, up 30.3 per cent.

"Our teams have executed strongly to support the delivery of record results in an uncertain economic environment," chairman Solomon Lew said.

Premier said it has identified 20 to 30 to new locations for new or larger stores for Peter Alexander and was finalising an agreement with a global e-commerce platform provider to launch the brand in 35 countries.

"Peter Alexander has a runway for future growth," Premier said.

It was also looking at increasing its Smiggle line of children's school accessory stores by 10 to 15 per cent, or around 30 more stores.

In the medium term it is looking at expansion in the Middle East, Indonesia and Thailand through a capital light strategy with long-term partners.

Premier said that its online sales were 18.9 per cent of all sales, at $170.9m.

Premier closed the half-year with $470.4 million cash in hand, and said it would hike its dividend 17.4 per cent to 54c as well as pay a special dividend of 16c. Both are fully franked.

The dividends will cost the company $111.4m, leaving Premier with a strong balance sheet to pursue possible acquisitions, something it indicated it was considering.

Since the half-year ended Premier has also upped its stake in Myer, which it now owns slightly more than a quarter of.

Premier said it had begun the second half strongly, with global sales up 7.7 per cent for its first six weeks, compared to a year ago.

E&P Financial retail analyst Phillip Kimber said in a note that the results were overall better than consensus expectations, and so were the initial second-half sales.

But at 2.21pm AEDT, Premier shares were down 1.5 per cent to $24.95.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.