Premier Investments: On Track for FY24 Revenue Expectations Despite 1H Sales Miss

Premier Investments, the retail conglomerate led by Solomon Lew, has reported its 1H results, with a slight miss on sales but a beat on earnings. The company's shares have reached new all-time highs following the announcement, driven by positive commentary regarding the second half of the fiscal year and plans for corporate activity. Let's delve into the details and explore what this means for Premier Investments' sales and growth prospects.



Premier Investments' 1H sales guidance came in at A$880 million, a slight miss compared to recent guidance. However, the company noted that sales across its brands, including Smiggle, Peter Alexander, and Just Jeans, had improved in the second half of the previous fiscal year. This improvement puts Premier Investments on track for FY24 revenue expectations, indicating a positive sales trend.



The company's earnings for the first half were ahead of expectations, with retail EBIT of A$209.8 million coming in at around 3% ahead of estimates and 5% ahead of recent guidance. This strong earnings performance, coupled with the positive sales momentum, has driven investor confidence in Premier Investments' prospects.

Premier Investments also provided positive commentary regarding some corporate activity. The company plans to spin off Smiggle by January 2025, with Peter Alexander to follow soon after. This strategic move aims to unlock value for shareholders by focusing on the company's core investments in Myer (MYR) and Breville (BRG), as well as its remaining brands under the Jeans Group.



The market has reacted positively to Premier Investments' demerger strategy, with shares setting new all-time highs following the announcement of its 1H results. This positive market reaction suggests that investors are optimistic about the company's prospects following the demerger strategy.

In conclusion, Premier Investments' 1H sales guidance may have been a slight miss, but the company's strong earnings performance and positive sales momentum indicate that it is on track for FY24 revenue expectations. The company's demerger strategy, which aims to unlock value for shareholders, has also been well-received by the market. As Premier Investments continues to execute on its strategic plans, investors can look forward to a positive outlook for the company's sales and growth prospects.

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