Solomon Lew’s Premier Investments will be the last major retailer to report its FY22 financials this Thursday, providing additional insight into consumer spending habits as we wind towards the Christmas season.
This also marks the first full financial year for Premier under Richard Murray, who headed up JB Hi-Fi for eighteen years.
Myer shares are up 28.3 per cent this year. Premier owns north of 20 per cent of the company.
Myer reported FY22 revenue of $2.989 billion, a 12.5 per cent jump. Profits were up 16.5 per cent to $60.2 million, while the retailer reported its strongest second half since 2013, which it rolled into its best six-week sales start to a new financial year since 2006.
Department store sales jumped 74.8 per cent in the first six weeks of FY22, although this is in comparison to the July 2021 lockdown period.
Sales were up a healthy 21.8 per cent against pre-pandemic levels.
Australians spent a record $34.7 billion at stores in July, marking a 16.5 per cent increase since January.
However, Deloitte’s quarterly retail report, ‘Retail’s Turning Point’ warns that these sales figures are artificially bolstered by the current inflation level.
A sixth double hike in a row, expected early next month, is likely to severely impact the Christmas retail season.
Premier’s 26.2 per cent stake in Breville will be a minor cause for concern, with shares down 42 per cent since January.
This is despite Breville breaking the $1 billion barrier in sales for the first time during FY22, with sales for the year ending June climbing 24.7 per cent to A$1.19 billion.
UBS analyst Shaun Cousins estimates Premier is holding net cash of $415 million and $256 million in franking credits as at July, and wiped all non-property related debt.
Premier Investments reports on Thursday.
