Aussie Retail Industry Back On Track As JB Hi-Fi Shares Hits Record High
A surprisingly positive sales update from the owner of one of Australia’s biggest retail groups is a powerful indication the industry is back on track after a painful pandemic shutdown.
Shares in Premier Investments, which owns Just Jeans, Smiggle and Peter Alexander, hit new highs on Wednesday after surging more than 18 per cent to $26.70.
The share surge came shortly after Premier announced its earnings before interest and tax in the first half of the financial year will jump by up to 85 per cent to $221-$233 million.
Financial analysts at Goldman Sachs and Morgan Stanley described the results as “significantly stronger” than expected and “exceptionally strong”, The Australian reports.
The positive results triggered a renewed confidence in consumer spending and investors took the opportunity to jump on other retail stocks.
Shares in JB Hi-Fi also jumped by 2.3 per cent to a close of $51.86 after hitting a record high of $53.05, while Harvey Norman lifted 4.2 per cent to $5.20 a share.
Fleur Brown, Head of Industry Affairs at the Australian Retailers Association, told The Australian she was both “relieved and encouraged” by the positive trends in consumer spending.
“While there are still deep pockets of pain, within CBD and Victorian retail in particular, discretionary retail has seen some promising signs with clothing, footwear and personal accessories up 18 per cent year on year in November,” Brown said.
“This is a very important indicator for the health of overall retail as it’s a good sign of consumer confidence returning.”