Premier Investments Limited [ASX:PMV] operates a number of specialty fashion retail chains. Brands under the PMV banner include Just Jeans, Jay Jays, Dotti, Portmans, Jacqui E, Peter Alexander and Smiggle. There are more than 1,000 stores across Australia, New Zealand, Singapore, UK and a joint venture in South Africa.
The share price closed 7.83% higher on Wednesday.
The company released its financial results for 2014.
Most of it was good news.
Underlying profit was up 10.3% to $106.6 million. Total sales growth across the board was 6.2%, with like for like sales higher by 4.7%.
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The only brand that didn’t experience sales growth during the year was Jay Jays, where sales declined 3.5% for the year.
The only other negative news for the company was that net profit after tax fell by a massive 58%. However, this is due to a reclassification of the Brevilles brand.
In addition, PMV’s full year dividend grew two cents to 40 cents for 2014.
The main driver of growth is coming from two brands. The expansion of Peter Alexander across Australia and Smiggle store opening in the UK.
Smiggle opened in the UK this year. There are eight stores trading since opening in the UK this year, with another ten to open before Christmas. By the end of next financial year, PMV estimates there will be around 25‒30 Smiggle stores operating in the UK.
Many other retailers are blaming the weather or the consumer. However, PMV continues to defy current retailing conditions in Australia. For the past couple of years, it has proven to be consistent performer.
Premier Investments hit an all-time high today of $10.70. If you are looking to add this retail stock to your portfolio – don’t rush in. The share price regularly experiences large dips which would present a buying opportunity.
Shae Smith+
Editor, Money Weekend
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