Premier To Pay Record Dividend, Despite 13% Profit Slide
Solomon Lew’s retail empire Premier Investments now being run by former JB Hi Fi boss Richard Murray, will reward investors with a record interim dividend payout, despite battling through what Lew calls “one of the most challenging and unpredictable halves of the pandemic”.
The Group suffered through store lockdowns that equated to 42,675 lost trading days, and saw profits drop by 13 per cent during the half-year period (ending January 29).
Net profits fell to $163.64 million for the period, while revenue was down by 1.9 per cent, to $770.3 million.
Strong cash reserves of $468.6 million and a solid balance sheet has nevertheless seen Premier raise interim dividend by 35 per cent to a record high of 46 cents per share, payable July 27.
“We are delighted with Premier Retail’s strong 1H22 result which was achieved despite the volatile trading environment,” CEO Richard Murray said. Murray left JB Hi-Fi last year to run Lew’s retail group.
“The Group has had to pivot rapidly during 1H22 to combat numerous logistical challenges in the face of lengthy government mandated lockdowns and the emergence of the Omicron variant during the latter part of the half. This result has been delivered through rigorous planning and execution across all areas of our business.”
Lew highlighted record results from Peter Alexander, and Portmans, the latter of which was up up 16.4 per cent, and “positive momentum” for the Smiggle brand.
Online business was responsible for 25.4 per cent of total group sales during the half, with Premier Retail (Just Jeans, Dotti, Smiggle, etc.) saw online sales up 27.3 per cent, to $195.4 million.
Gross profit for Premier Retail jumped1.4 per cent to $507.2m, while earnings rose 5.5 per cent to $212 million.
Solomon Lew highlighted the challenges of the half.
“Under government mandates, stores in our largest markets were shut for most of the first quarter equating to 42,675 trading days during the period.
“In the final two months of 1H22, we managed the impacts of the Omicron variant across our entire global business. 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.”
Shares have dropped 1.04 per cent this morning.