Premier raises FY retail earnings forecast

Premier Investments has raised its full-year retail earnings forecast by about 90 per cent after booming sales this year.

Solomon Lew’s company, which owns Just Jeans, Peter Alexander, Smiggle and more, has benefited from Australian and New Zealand stores trading for most of this year compared to the coronavirus lockdowns of early 2020.

Sales during the Easter school holidays were particularly strong. Mother’s Day also proved popular for sales.

Chief executive Mark McInnes said a decision to increase stock levels prior to Easter and school holidays had delivered strong sales.

However the reasons for the improvement were not so simple. 

Premier’s 122 Smiggle stores in the UK and Ireland were closed from January to March due to the coronavirus. They re-opened in April and May.

In Asia, Smiggle stores have been closed for lengthy periods. Premier said COVID-19 restrictions were expected to remain until at least the end of its financial year.

Premier has forecast full-year earnings for its retail division will be between $340 million and $360 million before interest and tax. 

Its financial year spans 53 weeks to July 31.

Premier also has an investments arm which was not included in Friday’s trading update.

Premier also owns clothing shops Dotti, Jacqui E, Jays Jays and Portmans.

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