Premier Investments (ASX:PMV) share price on watch after record profit result

The Premier Investments Limited (ASX:PMV) share price will be on watch today after announcing a record profit result despite COVID-19…
The post Premier Investments (ASX:PMV) share price on watch after record profit result appeared first on Motley Fool Australia. –

Smiggle Investor presentation 2019

The Premier Investments Limited (ASX: PMV) share price will be one to watch this morning following the release of its full year results for FY 2020.

How did Premier Investments perform in FY 2020?

For the 12 months ended 25 July 2020, the retail conglomerate posted a 2.1% decline in revenue to $1.25 billion.

This was due largely to store closures during the pandemic and offset slightly by a 48.8% jump in online sales to a record of $220.4 million. The Peter Alexander brand also delivered record sales, up 16.3% to $288.2 million for the year.

It was thanks partly to its higher margin online sales that Premier Investments was able to grow its earnings strongly during the 12 months despite its overall sales decline. The company recorded an impressive 29% increase in net profit after tax to $137.75 million.

This allowed the board to declare a fully franked final dividend of 36 cents per share, down slightly from 37 cents per share a year earlier. However, this brought its full year dividend to 70 cents per share, which was flat year on year.

Wage subsidies

Premier Investments advised that it became eligible for $68.7 million of global wage subsidies across seven countries during FY 2020, of which $49 million was received as of 25 July 2020.

Of the total amount, $35.5 million was passed directly through to eligible employees unable to work.

Circling back to its dividend, the Premier Investments board revealed that it considered the impact of wage subsidies on its profit and cash position. However, it determined that the net global government subsidies received were not required for the payment of the final dividend.

Smiggle closures

Management notes that the impact of COVID-19 was particularly severe on the Smiggle business.

In light of this and to ensure Smiggle is best placed to rebound and grow post-COVID-19, management is making some big changes.

It intends to close the final four Smiggle stores in Hong Kong by the end of October. Up to 55 Smiggle stores out of 131 in the UK will be closed this financial year. Management intends to impair 100% of its UK assets, as well as those in Hong Kong, Singapore, Malaysia, and Ireland.

It will now focus on investing in Smiggle’s highly profitable global online presence.


Due to the uncertain economic environment, no guidance was given for the year ahead.

However, management believes the company is extremely well placed. This is thanks to its seven strong brands, fully integrated and highly profitable online channel, strong balance sheet, and high calibre board and management team.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Premier Investments (ASX:PMV) share price on watch after record profit result appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!